Also, forprofit education company DeVry Inc. (DV) dropped –26.51% after materially lowering quarterly earnings guidance in late July. Specifically, the company guided revenue below Wall Street's expectations and forecast earnings per share to the $0.43 to $0.46 range—far below the consensus $0.78 that was in place at the time. Two weeks later the company reported earnings in line with the new forecast. During its official report, the company announced a new plan to improve performance quickly. The three-pronged plan included right-sizing its cost structure, re-establishing enrollment growth and investing toward future growth. To be candid, we were surprised by how abruptly the business downshifted but believe the gameplan to turn things around is a good one. We are patient, long-term investors who understand there will be bumps in the road in this controversial industry but similarly recognize its demographic and structural strengths.
From Ariel Funds' third quarter commentary.