Credit: Shutterstock photoDeVry Education Group, Inc.DV recently announced that it has reached a settlement with the U.S. Department of Education regarding its Jan 2016 Notice of Intent to Limit.
The Notice was about a specific graduate employment statistic previously used by DeVry University. This statistic was calculated based on student-specific data since 1975. However, the Notice contended that DeVry University lacked such student-specific data for the period from 1975 to Oct 1980.
The Department of Eduation further contended that DeVry University was required to keep its Career Services Manuals to substantiate its graduate employment rates, but its earliest manual was from 1983. However, DeVry University claimed that it produced to the Department campus-level summaries of graduate outcome data for the period from 1975 to Oct 1980 and student-specific data Oct 1980 onward, as well as Career Services Manuals from 1983.
As a result, a settlement was reached between the two parties to no longer use the statistic in question or to make any other representations regarding the graduate employment outcomes of DeVry University graduates for the same time period.
Consequently, DeVry University's participation in Title IV programs will also be under provisional certification. However, the company claims that the settlement will not hinder its ability to serve current or prospective students. Also, the university can continue to communicate its strong student outcomes, while providing assurances regarding the extent of its graduate employment data.
DEVRY EDUCATION Price
DEVRY EDUCATION Price | DEVRY EDUCATION Quote
Meanwhile, we remind investors that DeVry Education Group's total revenue decreased 3.5% in the 12 months ending Jun 30, 2016. Notably, the company's Business, Technology and Management segment revenues (that includes DeVry University) declined 23% in fiscal 2016, primarily hurt by the weak enrollment trend at the university.
Nonetheless, the university is undertaking several student-focused initiatives to return to growth, while it faces tough competition from other schools such as Birdgepoint Education, Inc. BPI , Lincoln Educational Services Corporation LINC and Universal Technical Institute, Inc. UTI to name a few.
DeVry currently has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
DEVRY EDUCATION (DV): Free Stock Analysis Report
UNIVL TECH INST (UTI): Free Stock Analysis Report
BRIDGEPOINT EDU (BPI): Free Stock Analysis Report
LINCOLN EDUCATL (LINC): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
