IBJNews

ITT Educational posts profit, raises forecast

Back to TopCommentsE-mailPrintBookmark and Share

Profit at ITT Educational Services Inc. soared in the second quarter as enrollment at the Carmel-based operator of for-profit colleges continued to swell.

ITT Educational said Thursday that it earned a profit of $96 million, up more than 35 percent from the same quarter a year ago.

The company earned $2.78 per share, beating analysts’ expectations of $2.68 per share.

As a result, ITT Educational now expects to produce profit of $11 to $11.35 per share during the full year, up from a previous forecasted range of $10.50 to $11.25.

Joblessness in the U.S. economy continues to help drive students to ITT’s schools to learn new skills. New student enrollment shot up 10 percent in the quarter, compared with the same period a year ago, to a total of 21,673. The company’s schools have total enrollment now of 84,695, an increase of 21 percent from the same time a year ago.

Quarterly revenue climbed 26 percent, to $401.8 million.

Loan defaults increased slightly, however. The company’s percentage of bad debt rose to 5.8 percent in the second quarter, up from 5.4 percent a year ago.

ITT shares opened Thursday at $88.66 each, down from a 52-week high of $119.20 reached in April. The stock dipped to $78.59 earlier this month before beginning to rebound.

The company has 121 campuses in 38 states.
 

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
ADVERTISEMENT