ITT Educational Services (NYS: ESI) reported earnings on Oct. 25. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ITT Educational Services met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share contracted significantly.
Margins dropped across the board.
ITT Educational Services logged revenue of $314.7 million. The 14 analysts polled by S&P Capital IQ anticipated sales of $317.1 million on the same basis. GAAP reported sales were 13% lower than the prior-year quarter's $360.6 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 $1.83. The 16 earnings estimates compiled by S&P Capital IQ forecast $1.76 per share. GAAP EPS of $1.83 for Q3 were 26% lower than the prior-year quarter's $2.48 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 57.4%, 340 basis points worse than the prior-year quarter. Operating margin was 22.5%, 800 basis points worse than the prior-year quarter. Net margin was 13.6%, 510 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $315.8 million. On the bottom line, the average EPS estimate is $1.92.
Next year's average estimate for revenue is $1.30 billion. The average EPS estimate is $8.10.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 337 members out of 409 rating the stock outperform, and 72 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 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 $51.54.
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The article ITT Educational Services Beats Expectations But Takes A Step Back Anyway originally appeared on Fool.com.
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