Piper Jaffray Remains Sidelined as Cost Cuts Drive ITT Educational Services' (ESI) EPS Beat

Piper Jaffray reiterated a Neutral rating on ITT Educational Services (NYSE: ESI), and raised the price target to $4.75 (from $3.50), following the company's 4Q earnings report. 4Q Revenue of $202.4M was ahead of $201.5M estimates, driven by slightly better-than-anticipated new enrollments. EPS of $0.44, beat $0.09 estimates on further aggressive cost cutting, most notably within Student Services and Admin Expenses.

Analyst Peter Appert commented, "Aggressive cost reduction efforts drove 4Q EPS upside; however, the company continues to battle disappointing near-term start and enrollment trends. Given the limited visibility into the long-term enrollment and earnings outlook for ITT, we remain on the sidelines. Maintain Neutral."

For an analyst ratings summary and ratings history on ITT Educational Services click here. For more ratings news on ITT Educational Services click here.

Shares of ITT Educational Services closed at $3.20 yesterday.

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