DeVry announced mixed fourth-quarter fiscal 2014 results beating
the Zacks Consensus Estimate for earnings but marginally missing
the same for revenues. However, earnings increased 35.2% year over
year as revenues turned positive for the first time in 12 quarters.
Lower costs and a lower tax rate also pulled up earnings. Overall,
DeVry is a high quality company. Its diversified portfolio of
programs, regular strategic acquisitions and turnaround efforts
give it a competitive advantage. DeVry's revenues and earnings are
being driven largely by its health care and international
businesses. However, the core business the BTM segment accounting
for half of the company's revenues, has been recording enrollment
declines and low profits. We, therefore, prefer to remain Neutral
on the stock until we see sustained enrollment growth and improved
profitability at DeVry University, not expected even in fiscal
2015. The challenged regulatory environment also remains an
Headquartered in Downers Grove, IL, DeVry Education Group Inc.
(DV) provides secondary and post-secondary education, primarily in
the U.S., and also has operations in Canada, some Caribbean
countries, Brazil, Europe, the Middle East and the Pacific Rim. The
company's programs focus mainly on the fields of business,
healthcare and technology. The company also serves accounting and
finance professionals. The Illinois-based company is the parent
company of American University of the Caribbean, Becker
Professional Education, Carrington College and Carrington College
California, Chamberlain College of Nursing, DeVry Brasil, DeVry
University (including Keller Graduate School of Management) and
Ross University. Founded in 1931, DeVry reports its operating
results under three segments:
Business, Technology and Management: This is the company's
flagship segment and includes operations of the company's largest
subsidiary, DeVry University. DeVry University offers graduate and
undergraduate courses, both onsite and online, in technology,
science, business and arts. The degrees offered are bachelor's and
master's degree. Graduate degree programs in management are offered
through DeVry University's Keller Graduate School of
Medical and Healthcare segment: The segment consists of Ross
University Schools of Medicine and Veterinary Medicine, American
University of the Caribbean School of Medicine (AUC), Chamberlain
College of Nursing and Carrington Colleges.
International and Professional Education: This segment includes
operation of Becker Professional Review and DeVry Brasil. DeVry
Brasil, which operates in the northeast region of Brazil, offers
undergraduate and graduate programs in the fields of business
management, health, law and engineering through its six
institutions Fanor, Ruy Barbosa, REA1, Faculdade Boa Viagem (FBV),
Faculdade do Vale do Ipojuca (FAVIP) and Faculdade Differential
Integral (Facid). While majority ownerships in Fanor, Ruy Barbosa
and REA1 were acquired in 2009, FBV, FAVIP and Facid were acquired
in Feb 2012, Sep 2012 and Jul 2013, respectively.
Becker Professional Review offers professional exam review and
training programs for many popular certification examinations like
Certified Public Accountant (CPA), Association of Chartered
Certified Accountants (ACCA), Chartered Institute of Management
Accountants (CIMA) and many more. The segment also includes
operations of ATC International and Falcon Physician Reviews which
were acquired in Apr 2011 and Apr 2012, respectively.
In Dec 2013, DeVry divested its underperforming Advanced
Academics business (which provided customizable online learning
solutions for middle and high school education) to, and formed a
strategic partnership with, Connections Education/Pearson.
The students who attend DeVry University, Ross University,
Chamberlain College of Nursing or Carrington Colleges can finance
their education through a variety of sources, including
government-sponsored financial aid including Title IV funds,
scholarships, employer-provided tuition assistance, veteran's
benefits and private loans. However, those undertaking Becker
review courses cannot avail of federal or state financial aid.
DeVry Education Group Inc. (DV): Read the Full
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