ITT Educational Services (ESI) Stock Surges After Earnings Report

NEW YORK (TheStreet) -- Shares of ITT Educational Services (ESI) were jumping 34.9% to $5.60 Friday after the for-profit technical institute reported its results for the first quarter.

ITT Educational Services reported earnings of 44 cents a share for the first quarter, above analysts' estimates of 7 cents a share for the quarter. Revenue fell 3.3% year over year to $230 million for the quarter, but above analysts' estimates of $216.6 million.

The company also said that it expects to complete the 2014 compliance audits of its administration of Title IV programs before the U.S. Department of Education's June 30, 2015 deadline.

About 1.8 million shares of ITT Educational Services were traded by 9:47 a.m., above the company's average trading volume of about 1.2 million shares a day.

TheStreet Ratings team rates ITT EDUCATIONAL SERVICES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate ITT EDUCATIONAL SERVICES INC (ESI) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."

You can view the full analysis from the report here: ESI Ratings Report

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