On Apr 25, 2014, shares of
DeVry Education Group Inc.
) reached a 52-week high of $47.73, eventually closing at $45.99.
The closing price represents a three-month return of around
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Share Price Drivers
Share price of DeVry Education rose close to 14% in respose to
solid third quarter fiscal 2014 results announcedon Apr 24. DeVry
Education beat the Zacks Consensus Estimate for both revenues and
earnings in the quarter.
Despite a year-over-year decline, adjusted earnings of 87 cents
per share beat the Zacks Consensus Estimate by 16.0% in the third
quarter of fiscal 2014.
Revenues of $496.1 million also beat the Zacks Consensus Estimate
of $492 million, which, we believe, was due to strong sales at
growth institutions like Chamberlain, Ross, Becker and DeVry
The company's total post-secondary enrollments across all its
programs were up 1.7% driven by double-digit enrollment increase
at the Chamberlain College of Nursing and DeVry Brasil.
Owing to increasing demand for nurses and physicians across the
U.S., the company witnessed solid business in the Medical and
Healthcare segment during the quarter. The segment reported a
double-digit increase in revenue, driven by growing demand and
Most encouragingly, this Zacks Rank #2 (Buy) education company
witnessed improved enrollment levels in the quarter at the
flagship college, DeVry University . DeVry University has been
witnessing enrollment declines for the past few quarters as a
result of overall economic downturn and lack of student
confidence, which has reduced demand.
Both new and total enrollment decline at the university were
narrower than the January session due to greater use of
scholarships during the past several sessions.
Most of the estimates for this stock moved up in the past 7 days,
following the company's solid third quarter results. As a
result, in the past 7 days, the Zacks Consensus Estimate for
fourth quarter of fiscal 2014 increased 3.2% to 64 cents per
share while that for fiscal 2014 increased 2.5% to $2.42 per
Another education company,
Capella Education Co.
) is expected to report first quarter 2014 earnings tomorrow i.e.
Apr 29. The Zacks Consensus Estimate for Capella's first quarter
stands at 73 cents per share while that for 2014 is pegged at
$2.95 per share.
Other Stocks to Consider
Other stocks worth considering in the education sector include
Apollo Education Group, Inc.
TAL Education Group
). Both the companies carry a Zacks Rank #2.