Shares of several for-profit educators came under severe
selling pressure after DeVry Inc.(NYSE:DV) provide lackluster guidance, which
raised questions for the entire sector on weakening enrollment after tougher
new regulatory environment.
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For the current quarter, the company projects to earn 43 to
46 cents per share on revenue of $500 million and $510 million, well below
analysts’ target of 79 cents per share on revenue of $519.2 million.
The company added that new enrollment for the summer term at
DeVry University is expected to fall 15 to 17 percent compared to last year's
term. In order to balance its falling enrollment, the company is planning to
eliminate 570 jobs or 5.40% of the company's total workforce of 10,500.
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DeVry could provide more details when it reports
fourth-quarter results Aug. 9, but it warned Monday that those results will
likely miss expectations.
Shares of DV slumped 27.39% to $20 and made a new 52-week
low of $19.56 in addition to a fall of 28% year to date.
Apollo Group Inc(NASDAQ:APOL) fell -1.16 (-4.01%) to $27.76
ITT Educational Services, Inc.(NYSE:ESI) slid -3.17 (-5.53%)
to $54.18
Strayer Education Inc(NASDAQ:STRA) lost -6.15 (-6.05%) to
$95.47
Education Management Corp(NASDAQ:EDMC) declined -0.09
(-1.85%) to $4.77
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