ITT Educational Services
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.
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