) to beat expectations when it reports fiscal third quarter 2013
results on Apr 23. Last quarter it posted an impressive 55.36%
Why a Likely Positive Surprise?
Our proven model shows that DeVry is likely to beat earnings
because it has the right combination of two key ingredients.
Positive Zacks ESP:
Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate is at +6.02%. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Zacks Rank #1 (Strong Buy)
DeVry carries a Zacks Rank #1.
Note that stocks with Zacks Rank #1, #2 and #3 have a
significantly higher chance of beating earnings. The sell rated
stocks (#4 and #5) should never be considered going into an
The combination of DeVry's Zacks Rank # 1 (Strong Buy) and
+6.02% ESP makes us very confident in looking for a positive
earnings beat on Apr 23.
What is Driving the Better Than Expected
We believe that further progress from its performance
improvement plan, improvement in new starts and consistently
rising demand for its healthcare programs will help DeVry beat
expectations this quarter once again.
Continued progress on its performance improvement plan to
align costs, regain enrollment growth and make growth
investments, has helped the company beat expectations in both the
quarters of fiscal 2013; a turnaround from weak quarterly results
in fiscal 2012.
In order to combat declining profits and student enrollments,
DeVry has undertaken cost-saving initiatives like workforce
reduction and curbed discretionary spending. Additionally, in
order to revive enrollment growth, the company is working on its
marketing efforts to build brand awareness; building
relationships with high schools, community colleges,
corporations, and government/military institutions; and improving
its technology. DeVry is also making targeted investments to
drive future growth like opening new campuses, diversifying into
new high demand education programs and investing in its
Other Stocks to Consider
DeVry is not the only firm looking up this earnings season. We
also see likely earnings beats coming from these 3 companies from
the service sector:
The Home Depot, Inc.
), Earnings ESP of +5.20% and Zacks Rank #3 (Hold).
J. C. Penney Company, Inc.
), Earnings ESP of +1.37% and Zacks Rank #3 (Hold).
), Earnings ESP of +5.26% and Zacks Rank #3 (Hold).
DEVRY INC (DV): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis
SAKS INC (SKS): Free Stock Analysis Report
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