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.
From Ariel Funds' third quarter commentary.
