DeVry Beats Despite Lower Enrollment

(DeVry earnings report updated with analyst commentary and raised price target.)

OAKBROOK TERRACE, Ill. ( TheStreet) -- DeVry ( DV) shares jumped higher in premarket trading Wednesday after the education stock topped Wall Street's quarterly expectations late Tuesday with higher profits and revenue despite a decline in new student enrollment at its namesake university.


DeVry said late Tuesday it booked a 22.3% jump in quarterly profits to $88.7 million, or $1.25 per share, compared with year-earlier earnings of $72.5 million, or $1 per share.

Fiscal-second quarter revenue came in 16.6% higher at $551.5 million, from $473 million in the 2010 fiscal-second quarter.

Analysts had been looking for DeVry to post earnings of $84.6 million, or $1.19 per share, on revenue of $548.5 million in the three months, edded Dec. 31.

DeVry shares jumped 3.4% ahead of the opening bell Wednesday after falling 1.7% on Tuesday ahead of its earnings report.

Oppenheimer analyst Scott Schneeberger had an outperform rating on DeVry shares following its better-than-expected earnings report, and raised his price target on the stock by $7 to $56.

The analyst increased his earnings outlook, citing strength at DeVry's Chamberlain College of Nursing and Becker Professional Education accounting school.

Schneeberger said he expects enrollment, revenue and earnings-per-share to slide this calendar year, though he anticipates a rebuild in calendar 2012 reflecting stabilization at DeVry's Business Technology and Management unit, Carrington (medical and healthcare-related school), Ross University of Medicine and sustained strength at Chamberlain.

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