On Nov 6, 2014, shares of DeVry Education Group Inc. (DV) reached a 52-week high of $49.51, eventually closing at $49.18. Shares of the education company have gained more than 7% since Oct 23 when the first-quarter 2015 results were reported. The closing price represents a year-to-date return of 41.2%.
Share Price Drivers
DeVry Education reported strong year-over-year increase in earnings and revenues in the first quarter of fiscal 2015, driven by solid growth in the health care, professional and international businesses and lower costs.
Earnings of 47 cents per share increased 113.6% from the prior-year quarter earnings of 22 cents due to top-line increase and lower costs. Also, adjusted earnings surpassed the Zacks Consensus Estimate of 31 cents by 51.6%.
DeVry’s quarterly net sales grew year over year for the second time in a row. Sales were up 2.5% year over year to $462.0 million. Also, net sales surpassed the Zacks Consensus Estimate of $455 million by 1.5% and were in line with management’s expectations of delivering modestly positive growth in the quarter.
Once again, the relatively strong growth in the medical and health care, professional and international businesses was partially offset by continued revenue decline at DeVry University.
Similar to its trends in the past few quarters, Medical and Healthcare segment’s double-digit increase in revenues was driven by growing demand and campus expansions. International and Professional Education also reported a double-digit increase on the back of top-line growth at both Becker Professional Review and DeVry Brasil.
Operating costs decreased 0.7% year over year in the first quarter comparing favorably with the company’s expectation of a year-over-year increase. The decline in operating costs was driven by lower student services and administrative expense during the quarter.
DeVry Education carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the education industry worth considering include GP Strategies Corp. (GPX), Lincoln Educational Services Corporation (LINC) and Capella Education Co. (CPLA). All the three education companies sport a Zacks Rank #1 (Strong Buy).
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