Shares of ITT Educational Services (ESI) rallied sharply Friday after the provider of postsecondary degree programs reported that an audit of its 2014 financial results has been completed and that it has filed its annual report on Form 10-K for FY2014. For FY2014, the company reported it swung to a profit of $29.3 million or $1.23 per share from a loss of $27 million or $1.15 per share in 2013.
Based on its 2014 financial results, the company said it believes its institutions’ composite score was above 2.0 in 2014, higher than the 1.5 threshold that is set by the U.S. Dept. of Education for an institution to be deemed financially responsible without the need for further oversight by the Education Department.
ITT Educational also provided guidance for FY2015, with net income expected between $19.2 million and $31.2 million and EBITDA of $90 million to $110 million. New student enrollment is expected to decrease between 10% and 15% relative to 2014. In recent midday trade, ESI was up 76%, still moving in the lower half of the 52-week range of $1.93 to $18.83.