ITT Educational Services
The 10-second takeaway
For the quarter ended June 30 (Q2), ITT Educational Services missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. GAAP earnings per share dropped significantly.
Margins contracted across the board.
ITT Educational Services notched revenue of $259.9 million. The 10 analysts polled by S&P Capital IQ hoped for sales of $272.9 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $329.8 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 $0.89. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.93 per share. GAAP EPS of $0.89 for Q2 were 55% lower than the prior-year quarter's $1.96 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 52.4%, 490 basis points worse than the prior-year quarter. Operating margin was 13.5%, 1,000 basis points worse than the prior-year quarter. Net margin was 8.0%, 590 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $257.1 million. On the bottom line, the average EPS estimate is $0.73.
Next year's average estimate for revenue is $1.07 billion. The average EPS estimate is $3.84.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 336 members out of 402 rating the stock outperform, and 66 members rating it underperform. Among 130 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 give ITT Educational Services a green thumbs-up, and 27 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 $19.00.
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