DeVry Inc. reported its fourth quarter earnings Thursday. The educational institute operator saw a net income of $8.1 million falling a whopping 89.2%. Earnings for the quarter came in at $0.12 a share, falling far below estimates of $0.79 per share. Revenue was also down 7.5% from last year to $505.9 million, below estimates of $529.5 million.
This is the fourth consecutive quarter that DeVry has seen a net income and revenue decrease, and the second quarter in a row that it has fallen below analysts' estimates. DeVry's troubles in the quarter can be attributed to higher operating costs, reduced enrollments, and increased investments in scholarships. The higher investment in scholarships is due to changes in the Pell Grant which has reduced the support certain students receive.
These negative earnings have weighed on the company's shares today. DeVry stock is down more than 4% to just above $19.