ITT Educational Services Inc.

Company Description

ITT Educational Services provide career-focused degree programs, with an emphasis on technology. The company has over 100 locations across the United States and currently have approximately 62,000 students enrolled in classes. Each location is nationally accredited by the U.S. Department of Education. ITT carries a market cap of $4.9 billion.

Enrollment Spikes

When ITT announced its year-end results on Jan 22 it included a 29.2% jump in new student enrollment for the fourth quarter. 14,911 new students signed up for classes compared to the 11,542 in the fourth quarter of 2007.

Quarterly earnings per share received a nice boost, up 34% to $1.61, up from $1.20 in the comparable period last year. The higher earnings came on increased enrollment and a 21.4% increase in revenues, now $280 million.

ITT has now surprise in each of its past 10 quarterly announcement. The most recent report of $1.61 was 12% higher than the consensus of $1.44.

Optimistic Outlook

In the same report Kevin Modany, President and CEO said, "As a result of our terrific performance in the fourth quarter and optimistic outlook regarding the operating environment in 2009, we have set our internal goal for 2009 EPS in the range of $6.25 to $6.45."

While the 2009 full-year consensus is inline with the forecast, the 2010 estimates are up 19% to $7.47, from $6.27, since the announcement. These projections are good enough for 25% growth in 2009 and another 16% in 2010.

The Chart

Shares of ESI have been setting higher highs and higher lows since November. currently the stock is trading near the 52-week high of $133.75. Take a look at the chart below.