DeVry Shares Plunged: What You Need to Know
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 private educator DeVry (NYS: DV) are scoring a solid "F" today, falling as far as 19.1% on very heavy volume.
So what: DeVry's fourth-quarter report gave investors plenty of reason to skip school. Results in the quarter were fine, with earnings and revenue slightly above analyst estimates, but enrollment for the fall semester declined by 1.2%.
Now what: CEO Dan Hamburger blames "a prolonged tough economy and new regulatory changes" for his enrollment troubles. Investors are taking DeVry's statements as a sign of slow enrollment across the industry, with significant drops for Strayer Education (NAS: STRA) , Apollo Group (NAS: APOL) , and Corinthian Colleges (NAS: COCO) on an otherwise fairly upbeat market day. And why not? All of these for-profit schools are facing the same headwinds.
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At the time this article was published Fool contributor Anders Bylund holds no position in any of the companies discussed here. 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 is investors writing for investors.
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