For-profit education company, DeVry Inc. ( DV - Analyst Report ) 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 regulations.

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 days.

Surprise History

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.

Our Recommendation

The stock carries a Zacks #5 Rank (a short-term ‘Strong Sell’ rating) following the dim outlook provided for the upcoming quarter.