DeVry Misses on Both Revenue and Earnings

Seth Jayson, The Motley Fool
Updated

DeVry (NYS: DV) reported earnings on Jan. 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), DeVry missed on revenue and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted, and earnings per share dropped significantly.

Margins contracted across the board.

Revenue details
DeVry chalked up revenue of $524.0 million. The 15 analysts polled by S&P Capital IQ predicted a top line of $535.6 million. Sales were 5.0% lower than the prior-year quarter's $551.5 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.92. The 18 earnings estimates compiled by S&P Capital IQ anticipated $1.00 per share on the same basis. GAAP EPS of $0.13 for Q2 were 90% lower than the prior-year quarter's $1.25 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 54.0%, 430 basis points worse than the prior-year quarter. Operating margin was 16.9%, 770 basis points worse than the prior-year quarter. Net margin was 1.7%, 1,440 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $541.7 million. On the bottom line, the average EPS estimate is $1.08.

Next year's average estimate for revenue is $2.13 billion. The average EPS estimate is $3.81.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 256 members out of 292 rating the stock outperform, and 36 members rating it underperform. Among 101 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give DeVry a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on DeVry is outperform, with an average price target of $48.19.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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