Why DeVry Shares Skyrocketed
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of for-profit educator DeVry (NYS: DV) surged 22% today after its quarterly results easily topped Wall Street expectations.
So what: For-profit educators have been pummeled by new rules and increased regulatory scrutiny, but DeVry's market-thumping results -- first-quarter EPS of $0.49 versus the consensus estimate of just $0.30 -- are triggering some much-needed optimism for the space. While DeVry's new student sign-ups dropped another 9%, it was much better than the 17% decline suffered in the previous quarter, suggesting that the trend in enrollment is beginning to turn.
Now what: Management said it is right on track to deliver cost savings of $60 million for fiscal 2013. "We are off to a good start in achieving our top two priorities of realigning our costs and regaining enrollment growth," said CEO Daniel Hamburger. "We are making solid progress on our performance improvement plan." Of course, given the huge uncertainty still surrounding the for-profit education sector, average Fools should remain cautious about buying into that bullishness.
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The article Why DeVry Shares Skyrocketed originally appeared on Fool.com.Fool contributor Brian Pacampara has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. 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.