China Distance Education Profit Tops Estimates; Cuts FY Revenue Guidance

(RTTNews) - China Distance Education Holdings Ltd (DL) on Tuesday reported third-quarter net earnings of $5.25 million or $0.146 per American depositary share compared with $5.27 million or $0.147 per share last year.

Excluding items, adjusted earnings for the quarter were $0.16 per share compared with $0.15 per share a year ago.

Revenues for the quarter increased 15.3% to $28.8 million from $25 million in the prior year, driven by growth in online education services.

Analysts polled by Thomson Reuters estimated earnings of $0.04 per share on revenues of $27.9 million for the quarter. Analysts' estimates typically exclude special items.

Total course enrollments were about 850,000 in the quarter, a decline of 8.1% from a year ago.

Gross margin rose to 60.5% from 58.1% a year ago.

For the fourth quarter, the company expects revenues of $35.3 million to $37 million, while analysts expect $45.2 million.

For the fiscal year 2015, the company now expects revenues of $107.8 million to $109.6 million, down from prior guidance of $116.6 million to $121.5 million. Analysts expect revenues of $117.6 million.