DeVry Inc.

Company Description

DeVry is the parent company for several schools and other educational services including DeVry University, Becker Professional Education, and others.

Net Income Up 57%

The company released first-quarter results for fiscal 2010 on Oct 27 that included revenues of $431 million, a 42% jump. Net income also surged and was 57% higher to $54.7 million.

Earnings per share came in at 76 cents, 11 cents higher than the Zacks Consensus Estimate. This was the third consecutive earnings surprise.

Excellent Growth

President and CEO, Daniel Hamburger, commented on the great quarter. "Our financial results this quarter were driven largely by exceptional revenue growth," said Daniel Hamburger. He added, "Our institutions continue to experience strong enrollment and student retention..."

Rising Estimates

Full-year estimates are up for 2010 and 2011. Currently the Zacks Consensus Estimate for this year is $3.19, up from $3.01 over the past 2 months. Next year's projections are averaging $3.86, up from $3.63.

These levels represent year-over-year growth of 38% and 21%, respectively.

Valuation

Shares are trading at just 17 times forward earnings, not a bad value for such a hot sector. Also, the company's PEG ratio is 0.9 times, so the growth is reasonably priced.

The Chart

The Zacks Consensus Estimate has been climbing consistently for the past 5 years and shows no signs of slowing.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service

Read the full analyst report on DV