7-24-2012 - From Fnno.com, you're watching the Financial News Network. DeVry Inc, a for-profit educational service, saw its shares drop over 27% in price in early Tuesday trading, making the stock the largest decliner on the S&P 500.
In the midst of falling enrollment, DeVry's estimated fourth-quarter profit failed to match analyst expectations. After the closing bell yesterday, Devry reported expectations of 43 to 46 cent earnings per share on revenue of between $500 and $510 million, a stark contrast from the analyst-predicted 78 cents per share on revenue of $516.7 million. The company also announced that it expects new enrollment at DeVry University to fall by 15 to 17 percent. The fall in revenue may be partially attributed to tighter admission policies and scholarships given to reduce student debt.
DeVry runs Chamberlain College of Nursing, Ross University, Keller Graduate School of Management, and the Carrington Colleges Group. The company plans to cut 570 jobs in hopes of saving at least $50 million in the next fiscal year. For more on the latest business news, follow us on Twitter @FNNOnline, or check out our website at fnno.com