DeVry Inc. (DV) registered second-quarter 2011 earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.19 by 5.0% and the year-ago earnings by 25.0%.
The upbeat results came in the wake of successful implementation of growth and diversification strategies, improvement in academic quality and successful student enrollment.
Quarterly Details
On a year-ago basis, total sales jumped 16.6% to $551 million for the reported quarter. The Zacks Consensus Estimate for revenues stood at $549 million.
In terms of segments, Business, Technology and Management grew 21.3% to $370.7 million, while Medical and Healthcare grew 14.8% to $142.1 million, Professional Education spiked 14.6% to $21.2 million and Other Educational Services recorded a growth of 2.7% to $17.3 million in the quarter.
DeVry’s operating income rose 24.4% to $135.5 million in the quarter from $108.9 million a year earlier.
Cash, Balance Sheet and Share Repurchase
DeVry exited the quarter with cash and cash equivalents of $459.2 million and no outstanding debt. Total shareholders’ equity was $1,269.5 million at the end of the quarter.
For the first six months of 2011, DeVry generated $273.9 million of cash from operating activities, boosted by strong operating results. Capital expenditures for the first six months of 2011 were $53.6 million.
DeVry repurchased 860,600 shares at an average price of $45.80 for a total of $39.4 million in the quarter.
During the quarter, DeVry University was rated as one of the eight highly productive institutions in the U.S. by McKinsey & Company.
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