ITT Educational Services (NYSE: ESI ) reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), ITT Educational Services beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP earnings per share contracted significantly.
Margins shrank across the board.
ITT Educational Services recorded revenue of $287.7 million. The 11 analysts polled by S&P Capital IQ expected to see revenue of $277.7 million on the same basis. GAAP reported sales were 16% lower than the prior-year quarter's $341.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.33. The 12 earnings estimates compiled by S&P Capital IQ averaged $1.28 per share. GAAP EPS of $1.33 for Q1 were 44% lower than the prior-year quarter's $2.38 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 56.5%, 400 basis points worse than the prior-year quarter. Operating margin was 19.5%, 990 basis points worse than the prior-year quarter. Net margin was 10.8%, 710 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $269.9 million. On the bottom line, the average EPS estimate is $0.93.
Next year's average estimate for revenue is $1.06 billion. The average EPS estimate is $3.82.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 345 members out of 411 rating the stock outperform, and 66 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give ITT Educational Services a green thumbs-up, and 26 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ITT Educational Services is hold, with an average price target of $16.64.
Looking for alternatives to ITT Educational Services? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add ITT Educational Services to My Watchlist.