Despite falling short, DeVry posts profit in Q2
- DeVry Education Group reported lower than expected results for the second quarter of 2015 on Thursday, with net income falling $5.8 million to $42.4 million.
- Performing particularly well for the for-profit college operator was the Medical and Healthcare segment, which saw revenue grow 12.4% over the previous year to $214 million in the three-month period ended Dec. 31, 2014.
- While it saw a 0.3% decline during the quarter, the International and Professional Education segment grew 8.8% over the previous year in the first two quarters of fiscal 2015, bringing in $114.4 million over a six-month period.
Considering the current regulatory and enrollment issues facing the for-profit sector, DeVry is doing pretty well. Unlike many of its peers, the company has been able to post income instead of losses and has mostly remained steady or better in its earnings over the past few years. That said, it hasn't been without its share of regulatory pressure. Last year, for example, the New York state attorney general's office investigated its marketing practices.
Also like other for-profits, DeVry has seen enrollments decline in its core businesses — namely in its Business, Technology, and Management segment, which includes DeVry University and the Keller Graduate School of Management. Its diversification, however, has worked to its benefit, as enrollments have seen healthy increases at the Chamberlain College of Nursing, Carrington College, and DeVry Brasil, which also recently acquired Faci and Damásio Educacional.
In short, while it does face its share of issues characteristic of for-profit higher ed, DeVry probably isn't likely to go the way of Corinthian Colleges any time soon.
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