Sum
mary Points:
- DeVry came out with an earnings beat with revenue growth and better operating margin.
- Company has spent hundreds of millions on acquisitions that helped revenue growth.
- Medical and Healthcare is the most important part of the business but within the segment not all parts are doing well.
- Enrollments are the key driver and these, in general, remain weak.
DeVry Education (NYSE:DV) came out with earnings yesterday that beat on both top and bottom lines. And while margins and results look good, the underlining story remains difficult. Weak enrollments remain the heart of the problem and the reason I decided not to become involved.
Revenue grew for the first time in two years while core operating margins were improved year-on-year for the fourth consecutive quarter. Last twelve months EPS is $2.59 while the street expects $2.57 and $2.79 in the next two fiscal years. So at first glance with a P/E of under 10 and what looks like improving numbers, the stock appears interesting.
