DeVry's first-quarter 2015 earnings of $0.47 surpassed the Zacks
Consensus Estimate by 51.6% and soared 113.6% year over year due to
top-line growth and aggressive cost cuts. Sales increased for the
second consecutive quarter and beat the Zacks Consensus Estimate.
Except for DeVry University, the company saw positive revenue
growth in all its institutions. Overall, DeVry is a high quality
company. Its diversified portfolio of programs, regular strategic
acquisitions and turnaround efforts give it a competitive
advantage. Over the past two years, DeVry's health care and
international businesses primarily drove its revenues and earnings.
In fact, these businesses are expected to contribute a
progressively larger portion of revenues/earnings in fiscal 2015.
However, the core business the BTM segment accounting for almost
half of the company's revenues, has been recording enrollment and
sales declines. We, therefore, prefer to remain Neutral on the
stock until we see sustained enrollment growth at DeVry University,
not expected even in fiscal 2015.
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, 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 (BTM): 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 degrees. Graduate degree programs in management are
offered through DeVry University's Keller Graduate School of
Medical and Healthcare segment: The segment operates through
DeVry Medical International (includes Ross University Schools of
Medicine and Veterinary Medicine and American University of the
Caribbean School of Medicine (AUC)), Chamberlain College of Nursing
and Carrington College.
International and Professional Education: This segment includes
operations 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, medical, healthcare, law and engineering through its
eight institutions at 13 campuses Fanor, Ruy Barbosa, REA1,
Faculdade Boa Viagem (FBV), Faculdade do Vale do Ipojuca
(Unifavip), Faculdade Differential Integral (Facid), Faculdade
DeVry Sao Luis (Sao Luis) and Faculdade DeVry Joao Pessoa (Joao
Pessoa). 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.
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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