IBJNews

ITT Educational continues enrollment, profit slide

Back to TopCommentsE-mailPrintBookmark and Share

ITT Educational Services Inc. again beat the expectations of Wall Street analysts despite repeating a recent trend of signing up fewer students and posting lower profit.

The Carmel-based operator of for-profit colleges announced Thursday morning that it earned $79 million in the second quarter ended June 30, a 17.7-percent drop from the same period a year ago.

But ITT boosted its earnings per share by buying back shares, including 1.1 million shares in the first quarter. That allowed the company to post earnings per share of $2.85, an increase from $2.78 in the same quarter last year.

Analysts were expecting earnings per share of $2.64 in the most recent quarter.

Enrollment of new students in the quarter fell 19.9 percent compared with the same period last year, to 17,351. Overall, ITT’s enrollment declined 7 percent, to 78,743.

Quarterly revenue also decreased, by 3.5 percent, to $387.9 million.

Enrollment has declined at for-profit colleges after the U.S. Education Department increased restrictions on recruiting. Beginning this year, the Obama administration is requiring for-profit colleges to ensure that at least 45 percent of former students are paying down their loans beginning four years after leaving school.

As a percentage of revenue, ITT’s bad debt decreased from 4.5 percent in the second quarter compared with 5.7 percent the same time last year.

ITT stock has been on a tear lately. After sinking to a 52-week low of $50 in September, shares rebounded to close at a high of $95.52 on Tuesday. The stock opened at $92.59 Thursday morning, fell $10 per share in early trading, then rose to $88.39 by mid-morning.

ITT adjusted its earnings-per-share goal this year from a range of $8.50 to $10.50 to $10 to $10.50.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. why oh why does this state continue to elect these people....do you wonder how much was graft out of the 3.8 billion?

  2. i too think this is a great idea. I think the vision and need is there as well. But also agree with Wendy that there may be better location in our city to fulfill this vision and help grow the sports of hockey and figure skating in Indy. Also to help further develop other parts of the city that seem often forgotten. Any of the other 6 townships out side of the three northernmost could benefit greatly from a facility and a vision like this. For a vision that sounds philanthropic, the location is appears more about the money. Would really like to see it elsewhere, but still wish the development the best of luck, as we can always use more ice in the city. As for the Ice growth when they return, if schedules can be coordinated with the Fuel, what could be better than to have high level hockey available to go see every weekend of the season? Good luck with the development and the return of the Ice.

  3. How many parking spaces do they have at Ironworks? Will residents have reserved spaces or will they have to troll for a space among the people that are there at Ruth Chris & Sangiovese?

  4. You do not get speeding ticket first time you speed and this is not first time Mr.Page has speed. One act should not define a man and this one act won't. He got off with a slap on the wrist. I agree with judge no person was injured by his actions. The state was robbed of money by paying too much rent for a building and that money could have been used for social services. The Page family maybe "generous" with their money but for most part all of it is dirty money that he obtained for sources that are not on the upright. Page is the kind of lawyer that gives lawyers a bad name. He paid off this judge like he has many other tine and walked away. Does he still have his license. I believe so. Hire him to get you confiscated drug money back. He will. It will cost you.

  5. I remain amazed at the level of expertise of the average Internet Television Executive. Obviously they have all the answers and know the business inside and out.

ADVERTISEMENT