DeVry Inc. (DV) continues to see higher earnings estimates ahead of reporting in early August. The company recently declared a semi-annual dividend of 8 cents per share, which translates into an industry-leading yield of 0.35%.
Company Description
DeVry is the holding company for DeVry University, Ross University, Chamberlain College of Nursing and Becker Professional Review. The education provider prepares students for careers in technology, business and management, delivering undergraduate, graduate and life long learning programs.
Ross University offers programs for general medical and veterinary practice. Chamberlain College of Nursing delivers undergraduate health care education programs.
Becker Professional Review prepares students for professional certification exams such as the certified public accountant (CPA), certified management accountant (CMA) and chartered financial analyst (CFA).
Rising Estimates
The company continues to see higher earnings estimates ahead of reporting fiscal fourth-quarter results on August 6.
Analysts are bullish on forecasts for the fiscal year ended June 2009. Current projections of $2.32 per share are up from $2.24 over the past 3 months. For the following year, earnings expectations of $2.90 were increased from $2.80 over the past 3 months.
Recent Events Include a Dividend Declaration
DeVry recently announced that it became a member of the S&P 500 in place of GM. In conjunction with this event, the education provider said it will offer 500 scholarships to workers affected by recent layoffs as of July 1.
The company also recently declared a semi-annual dividend of 8 cents per share, noting that it is payable July 9 to common stockholders of record as of June 16. The education player offers an industry-leading dividend yield of 0.35%. It is operating in an industry that virtually offers no dividends.
Favorable Industry Comparisons
In addition to offering an industry-leading dividend, DeVry boasts a strong balance sheet, which carries very little debt. The company’s debt to equity multiple of 0.02 compares to an industry average of 2.21. DeVry’s return on equity (ROE) of 19% tops the industry average of 15%. Its net profit margin of 11% is ahead of the industry average of 10%.
Strong Earnings
The company delivered strong results for the fiscal third quarter. Earnings per share of 70 cents came in well ahead of last year’s 53 cents and topped the consensus estimate by 4.5%. Revenues jumped 35% year-over-year to $391.9 million.
