For-profit education company,
) is all set to report its fourth quarter and fiscal 2012 results
after the closing bell on August 9, 2012. The Zacks Consensus
Estimate for the fourth quarter is pegged at 47 cents (estimated
year-over-year decline of 56.5%) on revenues of $510 million
(year-over-year increase of 6.8%).
For fiscal 2012, the Zacks Consensus Estimate is $3.21
(estimated year-over-year decline of 31.4%) on revenues of $2.1
billion (year-over-year increase of 3.8%).
Third Quarter Recap
DeVry's third quarter 2012 earnings of $1.00 per share declined
24.2% from the year-ago period due to a decline in revenues and
resultant margin contraction. Earnings were however in line with
the Zacks Consensus Estimate.
DeVry's quarterly net sales fell 3.9% to $540.8 million due to
sluggish student enrollments in the quarter, especially at DeVry
University and Carrington Colleges. Sales were slightly above the
Zacks Sales Estimate of $532 million.
The company's total post secondary enrollments were down 3.7%
over the prior-year quarter. The decline in enrollment is the
result of persistent unemployment, overall economic downturn and
subsequent decline in student demand, heightened competition and
modifications made to the business to comply with new
Read our full report at
DeVry Meets EPS, Enrollments Weak
Agreement of Estimate Revisions
Over the past 30 days, 13 of the 14 estimates on DeVry have been
revised for both the fourth quarter and full year 2012. All the
revisions have been in the downward direction. There have been no
estimate revisions over the last 7 days.
In late July 2012, DeVry announced a disappointing financial
outlook for the fourth quarter of 2012 and said that the company
plans to cut 570 jobs. Both revenue and earnings are expected to
decline from year ago as well as sequential levels, largely due to
lower enrollments. The downward pressure on earnings estimates was
in response to the guidance cut.
Magnitude of Estimate Revisions
Given the large number of estimate revisions, the consensus
estimate for the fourth quarter of fiscal 2012 has gone down over
the last 30 days from 79 cents to 47 cents. The consensus estimate
for fiscal 2012 has also gone down from $3.53 to $3.21 over the
last 30 days. There has been no change in estimates over the last 7
Over the past four quarters, DeVry has surpassed estimates once,
matched once and missed two times, thereby resulting in an average
earnings estimate of negative 5.56%. The company recorded a maximum
positive surprise of 4.85% in the fourth quarter of 2011.
The stock carries a Zacks #5 Rank (a short-term 'Strong Sell'
rating) following the dim outlook provided for the upcoming
DEVRY INC (DV): Free Stock Analysis Report
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