IBJNews

ITT Educational posts first-quarter profit, raises forecast

Back to TopCommentsE-mailPrintBookmark and Share

Profits at ITT Educational Services Inc. soared above the expectations of Wall Street analysts in the first quarter, prompting the company to raise its full-year forecast.

The Carmel-based operator of for-profit colleges said Thursday that it pulled in profits of $85.7 million, up nearly 44 percent from the same quarter a year ago.

ITT earned $2.46 per share. Analysts were expecting profits of $2.28 per share, according to Reuters.

As a result, ITT Educational now expects to produce profits of $10.50 to $11.25 per share during the full year, up from a previous forecasted range of $10 to $10.50 per share.

Joblessness in the U.S. economy continues to help drive students to ITT’s schools to learn new skills. New student enrollment shot up 22 percent in the quarter, compared with the same period a year ago, to a total of 23,064. The companies schools have total enrollment now of 84,555, an increase of 29 percent from this time a year ago.

Those gains drove a 33 percent surge in ITT’s revenue, to $384 million. Analysts had been expecting revenue of $372.7 million.

Analysts have been concerned that too many ITT students either don’t finish or fail to get a job after graduation, leading in both cases to defaults on their student loans. The company’s percentage of bad debt rose to 5.9 percent in the first quarter, up from 4.9 percent a year ago.

Nevertheless, the company’s stock price is up 23 percent for the year and trading near its 52-week high. The shares closed Wednesday at $118.15 apiece.

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. By the way, the right to work law is intended to prevent forced union membership, not as a way to keep workers in bondage as you make it sound, Italiano. If union leadership would spend all of their funding on the workers, who they are supposed to be representing, instead of trying to buy political favor and living lavish lifestyles as a result of the forced membership, this law would never had been necessary.

  2. Unions once served a noble purpose before greed and apathy took over. Now most unions are just as bad or even worse than the ills they sought to correct. I don't believe I have seen a positive comment posted by you. If you don't like the way things are done here, why do you live here? It would seem a more liberal environment like New York or California would suit you better?

  3. just to clear it up... Straight No Chaser is an a capella group that formed at IU. They've toured nationally typically doing a capella arangements of everything from Old Songbook Standards to current hits on the radio.

  4. This surprises you? Mayor Marine pulled the same crap whenhe levered the assets of the water co up by half a billion $$$ then he created his GRAFTER PROGRAM called REBUILDINDY. That program did not do anything for the Ratepayors Water Infrastructure Assets except encumber them and FORCE invitable higher water and sewer rates on Ratepayors to cover debt coverage on the dough he stole FROM THE PUBLIC TRUST. The guy is morally bankrupt to the average taxpayer and Ratepayor.

  5. There is no developer on the planet that isn't aware of what their subcontractors are doing (or not doing). They hire construction superintendents. They have architects and engineers on site to observe construction progress. If your subcontractor wasn't doing their job, you fire them and find someone who will. If people wonder why more condos aren't being built, developers like Kosene & Kosene are the reason. I am glad the residents were on the winning end after a long battle.

ADVERTISEMENT