Where Are DeVry Education Group Inc (NYSE:DV) Shares Headed Next?

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DeVry Education Group Inc (NYSE:DV) shares advanced 20.76% on after-hours trading last Friday, following an upbeat earnings release from the company.

DeVry Education Group Inc (NYSE:DV) earnings per share landed at $0.81, beating analysts’ estimates around $0.61 EPS. For this fiscal year, the target is at $2.36 earnings per share and at $2.49 for next year. Operating cash flow and adjusted operating income both increased in the quarter but revenue fell by 3.2%.

DeVry Education Group Inc (NYSE:DV) is a provider of educational services in business, healthcare and technology. Their programs also serve students post-secondary education as well as accounting and finance professionals. The company’s medical and healthcare segment covers the operations of DeVry Medical International, which operates three institutions: American University of the Caribbean School of Medicine (AUC), Ross University School of Medicine (RUSM) and Ross University School of Veterinary Medicine.

Still, analysts have mixed views for future stock performance. On the positive side, DeVry Education Group is seeing strong demand for its nursing and healthcare programs. This is particularly the case at DeVry Brasil, which saw total enrollment increase 35% in the March semester to over 79,000 students.

On a more concerning note, though, DeVry Education Group Inc (NYSE:DV) is still dealing with a pending Federal Trade Commission lawsuit. The suit is making its way through court, even though the company has filed a motion for the case to be dismissed. For now, the company still has some degree of financial risk stemming from this lawsuit, although it’s not clear to what extent at this point.

In addition, the company’s flagship DeVry University and Carrington College both reported significant declines in enrollment, accounting for much of the revenue drop in the latest quarter. The business technology and management segment of DeVry Education Group Inc (NYSE:DV) recorded revenues of $156.4 million, down 23.3% year-over-year due to persistently weak enrollment trends.

 

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