ITT Educational Services (ESI) Stock | Soars Higher By 80%


ITT Educational Services ( NYSE: ESI)

Shares of ESI traded significantly higher in Friday’s session as the postsecondary degree program provider released results of an audit from its financials in the year of 2014. The Company reported revenue of $961.8 million and diluted earnings per share of $1.23 which was easily above the expectations of $953.4 million in revenue and $1.02 in earnings per share.

ITT Educational Services Composite Score

Investors got what they were waiting for in the composite score of 2.0 in result of posting the 2014 audited financials as outlined in the official Press Release:
“The company reported that it believes, based on its 2014 fiscal year consolidated financial statements, that its institutions’ composite score was above 2.0 in 2014.  An institution’s composite score is a significant financial responsibility measurement of the U.S. Department of Education (the “ED”), and must be at least 1.5 for the institution to be deemed financially responsible by the ED without the need for further oversight.”


ESI Outlook

The Securities and Exchange Commission filed fraud charges against the company alleging that it had concealed important financial information with regard to student loan programs.  Shares of ESI have fallen from near $10 in early 2015, surrendering nearly 60% due to federal scrutiny. The short sellers continue to show their strong downside sentiment as they have roughly 60% of the float. The 50 day moving average lies at $5.18 while the 200 day is at $7.32.


Company Profile

ITT Educational Services, Inc. provides postsecondary degree programs in the United States. It offers master, bachelor, and associate degree programs to approximately 57,000 students, as well as short-term information technology and business learning solutions for career advancers and other professionals. The company’s information technology programs include communications, network administration, network technology, software development, systems technology, and technical support; and electronics technology programs comprise communications, computer technology, electronics product design and fabrication, industrial electronics, instrumentation, and telecommunications. Its drafting and design programs consist of architectural and construction drafting, civil drafting, computer aided drafting, electrical and electronics drafting, interior design, landscape architecture, mechanical drafting, and multimedia communications; business programs comprise accounting, business administration, financial services, manufacturing, marketing and advertising, and sales; and criminal justice programs include corrections, cyber security, investigations, and security and policing. The company’s nursing and health sciences programs comprise health information technology, medical assisting and administration, and nursing. Yahoo! Finance