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DeVry Education: Q2 Results Solid, Cost Saving Bodes Well
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On Mar 10, we issued an updated research report on DeVry Education Group Inc.DV – a secondary and post-secondary education provider.
Impressive second-quarter fiscal 2017 results, cost-saving initiatives, transformation strategy and plans to introduce more stackable programs are doing the tricks for DeVry.
Moreover, DeVry’s shares gained over 44% in the last six months, compared with the 21.9% rally of the Zacks categorized Schools industry. DeVry beat earnings estimates in all of the past four quarters. Estimates also moved 4.7% higher for the current year.
Also, the U.S. presidential election had a positive impact on the school industry as shares of for-profit education companies like Universal Technical Institute, Inc. (UTI - Free Report) , Strayer Education (STRA - Free Report) and American Public Education, Inc. (APEI - Free Report) have rallied since the victory of Donald Trump.
What’s Driving Devry?
In second-quarter fiscal 2017, DeVry’s earnings surpassed the consensus mark for the fourth quarter in a row. Earnings beat estimates by 16.4% and grew 25% on a year-over-year basis driven by solid performance of its International and Professional Education segment.
The company is launching a slate new programs, which are more directly aimed at meeting student preferences and employer needs. These programs are primarily shorter and more stackable, covering the technology, healthcare and business fields. They have been designed to provide students with enhanced flexibility and greater affordability to support their pursuit of in-demand skill-sets.
DeVry also undertook cost-saving initiatives like workforce reduction and cutback on discretionary spending. The company has brought down its expenses by $181 million in fiscal 2016 and expects to continue to do so in fiscal 2017 as well. The company is carefully managing costs as reflected in the nearly 4% reduction in total expenses in the second quarter of fiscal 2017.
DeVry’s health care and international institutions have shown significant improvement in revenues and profitability over the past few years. Though there has been a slowdown in Chamberlain's revenue momentum in the second quarter of 2017, the company continues to believe that Chamberlain will remain a robust performer given its demand for programs and strong enrollment growth.
Also, DeVry is strengthening its admissions process which could moderate growth in the near term to some extent but should also lead to better academic performance, higher NCLEX pass rates and increased persistence.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
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DeVry Education: Q2 Results Solid, Cost Saving Bodes Well
On Mar 10, we issued an updated research report on DeVry Education Group Inc. DV – a secondary and post-secondary education provider.
Impressive second-quarter fiscal 2017 results, cost-saving initiatives, transformation strategy and plans to introduce more stackable programs are doing the tricks for DeVry.
Moreover, DeVry’s shares gained over 44% in the last six months, compared with the 21.9% rally of the Zacks categorized Schools industry. DeVry beat earnings estimates in all of the past four quarters. Estimates also moved 4.7% higher for the current year.
Also, the U.S. presidential election had a positive impact on the school industry as shares of for-profit education companies like Universal Technical Institute, Inc. (UTI - Free Report) , Strayer Education (STRA - Free Report) and American Public Education, Inc. (APEI - Free Report) have rallied since the victory of Donald Trump.
What’s Driving Devry?
In second-quarter fiscal 2017, DeVry’s earnings surpassed the consensus mark for the fourth quarter in a row. Earnings beat estimates by 16.4% and grew 25% on a year-over-year basis driven by solid performance of its International and Professional Education segment.
The company is launching a slate new programs, which are more directly aimed at meeting student preferences and employer needs. These programs are primarily shorter and more stackable, covering the technology, healthcare and business fields. They have been designed to provide students with enhanced flexibility and greater affordability to support their pursuit of in-demand skill-sets.
DeVry also undertook cost-saving initiatives like workforce reduction and cutback on discretionary spending. The company has brought down its expenses by $181 million in fiscal 2016 and expects to continue to do so in fiscal 2017 as well. The company is carefully managing costs as reflected in the nearly 4% reduction in total expenses in the second quarter of fiscal 2017.
DeVry’s health care and international institutions have shown significant improvement in revenues and profitability over the past few years. Though there has been a slowdown in Chamberlain's revenue momentum in the second quarter of 2017, the company continues to believe that Chamberlain will remain a robust performer given its demand for programs and strong enrollment growth.
Also, DeVry is strengthening its admissions process which could moderate growth in the near term to some extent but should also lead to better academic performance, higher NCLEX pass rates and increased persistence.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>