DeVry Inc. (DV) reported strong results for the first quarter of fiscal 2010 with earnings of 76 cents per share. Earnings were below the Zacks Consensus Estimate of 78 cents, but up 58.3% year-over year.

Revenues for the quarter increased 41.9% year-over-year to $431.1 million, driven by double-digit revenue growth in the Business, Technology and Management segment as well as the Medical and Healthcare segment. The two strategic acquisitions of U.S. Education and Fanor also have also contributed positively to the top-line.

On a segment-by-segment basis: revenues from Business, Technology and Management grew 23.9% for the quarter, driven by continued online expansion and improved on-site enrollments. The total number of online undergraduate and graduate course-takers increased 15.2% to 20,496 students.

In the Medical and Healthcare segment, revenues more than doubled from the prior-year quarter, driven by the addition of U.S. Education. Even excluding the impact of acquisition, revenue grew 119.9% year-over-year. The increase was driven by strong new student enrollments across its universities: Ross University, Chamberlain College of Nursing and U.S. Education.

The Professional Education segment results were negatively impacted by the economic slowdown. Revenues were down 3% in the quarter. This segment primarily comprises Becker Professional Education, which continues to expand its relationships with key accounting and financial partners and is well positioned for long-term growth.

DeVry generated $177.2 million of operating cash flow, driven by strong operating results and working capital management. As of Sept. 30, 2009, cash, marketable securities and investment balances totaled $340.5 million. DeVry had a debt of $104.8 million at the end of the period.

During the quarter, the company repurchased 235,000 shares of its common stock at a cost of approximately $11.7 million. As of Sept. 30, 2009, DeVry had repurchased more than $45 million of its $50 million program at an average cost of $48.12 per share.

Based on the strong performance in fiscal 2009, the company feels comfortable about delivering double-digit revenue growth and approximately 20% compound annual earnings per share growth over the next few years.
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