DeVry (DV) posts triple digit income increase
Posted by: in Companies Competitive StrategyFiled under: Earnings reports, Good news, Competitive strategy
One good thing to come out of the softening economy is that working adults might return to school in more massive than average numbers to brush up on the latest in-demand job skills. DeVry Incorporated (NYSE: DV) is well put to provide convenient, inexpensive, job-related educational opportunities. In its most recent quarter, DeVry’s student enrollment grew 10%, it opened two new physical campuses and beefed up its accounting and finance programs.
Revenues for 2Q 2008, announced January 24, increased 16% to $237.7 million, but operating income increased 115% to $46.9 million, while net income increased 118% to $35.8 million, and diluted EPS increased 113% to $0.49.
At a cost of $27.5 million in cash, DeVry recently acquired Advanced Academics, Inc., which provides K-12 on the web educational opportunieis for the growing cyber-home school segment. DeVry’s student loan program is in good shape, a claim not all for-profit educational companies can make.
The stock gained 3.6% on January 31 to close at $55.19, but gave up half that gain on February 1 to shut down 1.5% at $54.35, before regaining that decline on February 4 to close at $55.11, up 1.4%. Investors may wish to investigate the for-profit educational sector for possible attractive growth candidates.
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