ITT Educational Services Beats on Both Top and Bottom Lines
Apr 26th 2013 7:58PM
Updated Apr 26th 2013 11:20PM
ITT Educational Services (NYS: 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.
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The article ITT Educational Services Beats on Both Top and Bottom Lines originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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