ITT Educational Services, Inc.

ITT Educational Services, Inc. (ESI - Analyst Report) reported excellent fourth-quarter results in late January, and the analyst community continues to be bullish on the company's long-term prospects, with the next-year estimate projecting 17% earnings growth.

Company Description

ITT Educational Services provides post-secondary degree programs in the United States. The company was founded in 1946, operates in 37 states and has a market cap of $4.3 billion.

Industry Trend

The weak economy has motivated many people to build their skills and pump up their resumes, fueling demand for private educational services. This dynamic was on display when ITT reported strong fourth-quarter results on Jan 22.

Fourth-Quarter Results

Revenue was up 21% from last year to $279.8 million. Income came in at $63 million, up from $48.5 million, producing earnings of $1.61 per share, 17 cents ahead of the consensus estimate.

Consistent Results

ITT has been producing consistently impressive results over the last year, having surprised and beat estimates in each of the last four quarters by an average of 18 cents, or 17%.

ITT noted that its strong results were fueled by a 29% jump in new student enrollment, climbing to 14,911 from 11,452 last year. Total enrollment at the end of the period stood at 61,983, a 17% increase from the previous year.

Estimates Advance

After the solid quarters the analyst community raised their earnings estimates. The current-year estimate is up 10 cents in the last 30 days to $6.60 per share, while the next-year estimate is up 19 cents to $7.66, a 16% earnings growth projection.

The Chart

Shares of ESI recently dipped lower from a new 52-week and all-time high to pressure a trend line that has been in play since early October. Take a look below.