* 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 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.
Advertising expenses in the second quarter were $7 million
less than in the previous three months, but the company said it
expected higher advertising expenses again in the third quarter.
"Looking to the third quarter, we now expect total costs and
expenses to be up sequentially about 3 percent to 4 percent,"
"The biggest driver is expected to be advertising spending
for the third quarter, which should be more in line with
DeVry and some of its peers, including Washington Post Co's
Kaplan business and ITT Educational Services Inc
, are among the 25 biggest advertisers on Google.
DeVry's second-quarter net income rose to $50 million, or 78
cents per share, from $9 million, or 13 cents per share, a year
ago. Earnings, excluding items, were 87 cents a share.
Revenue fell about 4 percent to $505 million.
Analysts had expected earnings of 56 cents per share on
revenue of $496.6 million, according to Thomson Reuters I/B/E/S.
For the three-month period to Dec. 31, 2012, new student
enrollment for DeVry's Carrington Colleges Group, which caters
to medical students, increased 12.7 percent from a year ago.
Chamberlain College of Nursing's new student enrollment in
the November session increased 13.5 percent. For the January
session, new student enrollment increased 87.8 percent to 2,120