DeVry shares soar on 3Q profit beat

DeVry Education's 3rd quarter profit beats expectations, shares soar in trading

Associated Press

NEW YORK (AP) -- Shares of DeVry soared more than 14 percen Friday after the for-profit education company topped most profit expectations for the third-quarter.

The decline in student enrollment is slowing, DeVry said, and it has been able to accelerate cost cuts.

DeVry earned $55.5 million, or 86 cents per share, for the period that ended March 31. That's down from $56.8 million, or 88 cents per share, last year.

On an adjusted basis it earned 87 cents per share, which was much better than the 75 cents that Wall Street was looking for, according to a poll by FactSet.

Revenue slipped 1.5 percent to $496.1 million, but that was also better than expected.

The company did not report across the board enrollment data for the three-month period. But it said that enrollment at its Chamberlain College of Nursing and DeVry Brasil improved in March. Enrollment fell for its Carrington Colleges Group and DeVry University for the quarter.

DeVry Education Group Inc., like many for-profit education companies, is trying to recover from an extended period of weak enrollment. These schools saw a boost in enrollment when the recession first hit but increased scrutiny, new regulations and a still sluggish economy has since dragged on enrollment.

Shares of the Downers Grove, Ill. Company rose $5.81 to $46.17 by late afternoon amid a broader market decline.

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