What happens when the economy slows and people lose their jobs? Among many other things, some people choose to go back to school and upgrade their skills. No matter if the economy is bad or great, the education industry is always doing well.
There aren’t a lot of private education companies out there that trade on a stock exchange. The University of Phoenix, Inc. (Apollo Group, Inc.; NASDAQ/APOL) is a for-profit education company that focuses on adult education, but there is some controversy with this company and not all of its programs meet academic accreditation.
One of the most successful education companies in the marketplace is DeVry, Inc. (NYSE/DV). This firm runs DeVry University, Advanced Academics, Ross University, Chamberlain College of Nursing and Becker Professional Review.
In its second fiscal quarter of 2008, ended December 31, DeVry’s revenues grew 16% to almost two hundred and seventy-four million dollars, up from revenues of around two hundred and thirty-five million dollars.
Net income for the second quarter was close to thirty-six million dollars, up substantially from net income of over sixteen million dollars generated in the comparable quarter.
The company reported that its DeVry University subsidiary achieved its ninth consecutive period of positive undergraduate new student growth and the sixth consecutive period of positive total student enrollment growth. New students increased 10.7% and total students increased 10.3% in the latest quarter.
DeVry finished the first half of fiscal 2008 with approximately two hundred and forty-one million dollars in cash and without debt.
The company recently announced that it will be opening two new facilities in the Los Angeles County communities of Palmdale and Lancaster. The company will open a new campus of DeVry University along with its Keller Graduate School of Management.
According to the company, 93% of its system-wide graduates in the active job market were employed in their fields within six months of graduation at an average salary of $43,000. DeVry has a proven track record of strong academic achievement, as well as providing solid wealth creation for stockholders. A company like this will likely weather any economic environment very well.