DeVry, Capella Education Beat Expectations

NEW YORK ( TheStreet) -- DeVry ( DV) and Capella Education ( CPLA) topped quarterly profit expectations despite softer student enrollment.

DeVry shares rose 2.2% to close at $50.09 on Tuesday while Capella added 1% to $50.29.

DeVry, which runs Keller Graduate School of Management, Chamberlain College of Nursing, Ross University and the Carrington Colleges Group, said Tuesday it earned $92.9 million, or $1.32 per share, in the recent quarter, up 14.4% from a profit of $81.2 million, or $1.12 per share, in the year-earlier quarter.

Revenue jumped 11.6% to $562.7 million, from $504.4 million, helped by an increase in total student enrollment.

Top- and bottom-line results topped analysts' expectations for DeVry to earn $86.9 million, or $1.23 per share, on revenue of $563.8 million.

While DeVry's total student roster grew, new undergraduate enrollment at its namesake university dropped 15.4%; at its Ross University, new student enrollment fell 8.2%.

For Capella Education, new student enrollment plummeted 35.8%, and it forecast new student starts would be down 40% in the fiscal second quarter as the impact of increased competition and recent measures instituted to remain in compliance with new Department of Education regulations pressure enrollment standards.

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