Compass Point Cuts Price Target on DeVry Education Group (DV) to $28 Following 4Q15 Results

Compass Point maintained a Neutral rating on DeVry (NYSE: DV), and cut the price target to $28.00 (from $34.00), following the company's 4Q15 earnings results. Adjusted EPS of $0.57 missed consensus of $0.62. Revenues fell 2.5% YOY to $473M, missing consensus of $478M. For 1Q16, revenue is expected to decline 5% YOY (implied: $439M vs. consensus of $456M). For FY16, management expects revenue to be down 5% (implied: $1.81B vs. consensus of $1.89B) and adjusted EPS to be flat to slightly up from the $2.49 in FY15 (vs. consensus of $2.56).

Analyst Michael Tarkan commented, "We are maintaining our Neutral rating on DV shares but are lowering our price target to $28, from $34, after the company reported weaker than expected core trends, as continued pressure at DeVry University (DVU) was partially offset by stabilization within the Medical, Healthcare, and International segment. More importantly, guidance for 1Q16 and FY16 missed expectations and YOY revenue growth weakened sequentially in each of the company's operating segments. While management described some optimism regarding its new 5-year operating plan, core operations are likely to remain depressed near-term as underlying demand remains tepid."

For an analyst ratings summary and ratings history on DeVry click here. For more ratings news on DeVry click here.

Shares of DeVry closed at $27.05 yesterday.

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