DeVry sees cost savings in 2013, more medical students

Wed Feb 6, 2013 7:50pm EST
 
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* Second-quarter adj earnings per share $0.87 vs est. $0.56

* Revenue $505 mln vs est. $496.6 mln

* Raises fiscal 2013 cost savings forecast to $80 mln

* Shares up 13 percent in extended trading

By Ritika Rai

Feb 6 (Reuters) - For-profit education company DeVry Inc posted a higher-than-expected quarterly profit on lower costs and higher enrollments at its medical and healthcare colleges in the United States and Canada.

Shares of DeVry, which had risen about 40 percent in the six months to Wednesday's close, were up a further 13 percent in extended trading at $29.40 on the New York Stock Exchange.

The company, which owns institutions such as DeVry University, Chamberlain College of Nursing and Carrington College, raised its forecast for cost savings in the current fiscal year by one-third to at least $80 million.

"The cost savings are being driven by structural changes made to these institutions, like revisions to staffing models, course scheduling and e-books," Chief Financial Officer Tim Wiggins said in a post-earnings conference call with analysts.   Continued...