(By Salman - iStockAnalyst Writer)
Bullish Stock of the Day : DeVry (NYSE: DV)
DeVry Inc is one of the largest publicly held, international, higher educational organizations in North America, and the parent organization for DeVry University, Ross University, Apollo College, Western Career College, Chamberlain College of Nursing, Becker Professional Review and Advanced Academics Inc. DeVry University offers associate, bachelors, and masters degree programs in technology, healthcare technology, business, and management at 91 locations in the United States, Canada, and online; and graduate degree programs in management through its Keller Graduate School of Management.
Last month, the company reported spectacular quarterly results. DeVry said net income surged 32.8% to $50.9 million from $38.3 million in the prior year period. Fully diluted earnings per share rose 32.1% to 70 cents compared with 53 cents per diluted share in the year-ago period. On an adjusted basis, the company earned 74 cents a share. Revenue jumped 35% to a record high of $392 million in the third quarter and was up about 35% versus prior year. Analysts on average were looking for earnings of 67 cents a share, before special items, on revenue of $388.3 million.
The company's robust performance can be attributed to strong enrollment and improved retention. The recession has rather turned out to be a blessing in disguise for the private education companies, as more and more Americans have been forced to return to the classrooms to enhance and upgrade their skill sets.
On a segmental basis, revenue growth within DeVry University segment continued at a strong pace of 18.7% versus prior year. This growth is being driven by continued online expansion and improved on-site improvements. The University also registered strong undergraduate enrollment growth, with new spring enrollments climbing 15.1% to 14,288 compared with 12,410 in the year ago quarter. Chamberlain's new student enrollment in spring 2009 jumped 68.1% while at Ross University, new student enrollment increased 10.9%.
Clearly, the company has turned adversity into opportunity. DeVry is quite determined to use the current economic downturn to its advantage and has continued with its aggressive expansion. The company's Apollo College will launch its first online bachelor’s degree completion programs this summer. It will offer bachelor’s in both medical imaging and respiratory care.
It is also quite focused on global expansion plan. The company recently acquired majority stake in Fanor, a leading post secondary provider in northeastern Brazil. Fanor is the parent organization of three institutions that operate five campuses and serves more than 10,000 students through 28 undergraduate and graduate programs in business, law and engineering. Brazil may turn out be a rewarding market for the company.
