NEW YORK (TheStreet) -- DeVry Education Group (DV) shares are up 15.5% to $46.63 on Friday following the release of the company's third quarter earnings results.
Net income for the quarter was $55.5 million, or 86 cents per share, beating analysts consensus estimates by 11 cents.
The educational services provider reported a 1.5% year over year quarterly decrease in revenues to $496.1 million, in line with analysts consensus revenue guidance for the quarter.
TheStreet Ratings team rates DEVRY EDUCATION GROUP INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEVRY EDUCATION GROUP INC (DV) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.31, which illustrates the ability to avoid short-term cash problems.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Diversified Consumer Services industry and the overall market, DEVRY EDUCATION GROUP INC's return on equity is below that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$28.10 million or 274.71% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: DV Ratings Report