For-profit education company
) recently announced that its board of directors has authorized a
new $100 million share repurchase program. The board authorized
DeVry to repurchase up to $100 million shares through the end of
2014. The buyback will be carried out using the available cash or
The new plan will be DeVry's eighth share repurchase program,
which is schedule to be effective after the completion of the
existing buyback program.
Also recently, DeVry announced plans of restructuring its board
of directors. The company nominated Dr. Alan G. Merten for the
director's post, replacing the current board member Julia A. McGee.
The latter informed the Board about her unwillingness to contest
for re-election once her current term expires. The board will
recommend shareholders to vote for Merten at the upcoming annual
general meeting of shareholders in early November.
We currently have an Underperform recommendation on DeVry. The
stock carries a Zacks #5 Rank (a short-term 'Strong Sell'
DeVry's fourth quarter performance was dismal. Both top and
bottom lines declined on a sequential as well as year-over-year
basis. DeVry's fourth quarter 2012 earnings of 47 cents per share
declined 56% from the prior-year quarter due to lower revenues and
high operating costs. Net sales fell 7.5%, once again due to a
decline in enrollment.
DeVry has been witnessing persistent enrollment declines as a
result of overall economic downturn and lack of student confidence.
In July, DeVry had pre-announced its guidance for the quarter,
which was largely disappointing. The final reported results were
almost in line with the pre-announced figures. A difficult
regulatory environment and intense competition also create
significant overhangs. We thus believe that though management is
trying to boost its business and control costs, it might take time
for these initiatives to deliver the desired results.
DEVRY INC (DV): Free Stock Analysis Report
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