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