ITT Educational Services
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ITT Educational Services missed estimates on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
ITT Educational Services tallied revenue of $300.8 million. The 14 analysts polled by S&P Capital IQ anticipated a top line of $313.6 million on the same basis. GAAP reported sales were 18% lower than the prior-year quarter's $368.3 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 $3.57. The 15 earnings estimates compiled by S&P Capital IQ anticipated $1.80 per share. GAAP EPS were -$0.41 for Q4 against $2.86 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 57.0%, 2,030 basis points worse than the prior-year quarter. Operating margin was 25.6%, 880 basis points worse than the prior-year quarter. Net margin was -3.1%, 2,380 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $283.4 million. On the bottom line, the average EPS estimate is $1.41.
Next year's average estimate for revenue is $1.08 billion. The average EPS estimate is $4.50.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 344 members out of 411 rating the stock outperform, and 67 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 $24.96.
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