DeVry University, the flagship subsidiary of DeVry Inc. (DV - Analyst Report) , recently received reaccreditation from Engineering Technology Accreditation Commission (ETAC) of ABET for three undergraduate engineering technology programs.
ABET stands for Accreditation Board for Engineering and Technology, Inc. (ABET). Established in 1932, ABET is a private institution which approves graduate and post-graduate degree-granting programs mainly in the field of applied science, computing, engineering and engineering technology. ABET has founded four commissions out of which ETAC focuses on accrediting engineering technology related courses, being one of them.
Three programs receiving the reaccreditation were Biomedical Engineering Technology, Computer Engineering Technology and Electronics Engineering Technology onsite programs.
Earlier in March, DeVry University was granted reaccreditation from Higher Learning Commission’s (HLC) Institutional Actions Council (IAC). Other than this, in May, the university also announced that Accreditation Council for Business Schools and Programs (ACBSP), a U.S.-based accreditor of business programs renewed the certification of its business and accounting degree programs.
The reaccreditations ensure that employers, other engineering and technical higher education institutions and governmental entities will give due recognition to the degrees and credits earned by the university students.
DeVry University which accounts for half of DeVry’s revenues, is one of the largest private, degree-granting, regionally accredited, higher education institution in North America. It is famous for its diverse portfolio of programs which not only helps it to drive growth but also attract and develop talent across DeVry by offering a broader range of career opportunities.
In the past few quarters, DeVry University has been witnessing a persistent decline in enrollments due to the weak macroeconomic environment and subsequent decline in student demand (due to the hesitancy over taking a loan). In fourth-quarter fiscal 2013, the segment’s revenues declined 17.7% year over year due to a dip in both undergraduate and graduate enrollments. The segment is expected to continue to struggle in fiscal 2014.
In order to boost enrollment growth at DeVry University, the company is working on its marketing efforts to build brand awareness; improving its technology; and improving affordability through scholarships and pricing. However, we believe the Zacks Rank #3 (Hold) company has a long way to go to completely rebound the segment’s business.
Other education companies worth a look are Bright Horizons Family Solutions, Inc. (BFAM - Snapshot Report) , ATA, Inc. and Grand Canyon Education, Inc. (LOPE - Snapshot Report) , all carrying a Zacks Rank #2 (Buy).