IBJNews

Enrollment, profit fall at ITT Educational

Back to TopCommentsE-mailPrintBookmark and Share

ITT Educational Services Inc. signed up fewer students and saw fewer profits in the first quarter, but it still beat the expectations of Wall Street analysts.

The Carmel-based operator of for-profit colleges earned $85.4 million in the three months ended March 31, a 2.4-percent decline from the same quarter a year ago.

But ITT has boosted its earnings per share by buying back shares, including 2 million in the first quarter and more than 6 million in the last year.

That allowed the company to post earnings per share of $2.91, an increase from $2.46 in the same quarter last year.

Analysts surveyed by Thomson Reuters were expected earnings per share of $2.54 in the most recent quarter.

Enrollment of new students in the quarter fell 5.6 percent compared with the same period last year, to 21,761. Overall, ITT’s enrollment slipped 0.6 percent, to 84,030.

Fewer students contributed to a slight dip in revenue of 0.2 percent, for a quarterly total of $383.2 million. Analysts were expected revenue of $383.7 million.

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

If schools’ former students fail to achieve that threshold, the government will not allow a for-profit education program to get student-loan funding to raise its enrollment levels. And if repayment rates fall below 35 percent, the government would cut off student-loan funding entirely for any new students.

Since the Obama administration announced the details of those new rules in July, ITT’s shares have lost a quarter of their value. They closed Wednesday at $66.05 apiece.

ITT stock surged by as much as 9 percent in morning trading. Shares traded at $68.79 each, up 4.2 percent, at midday.

ADVERTISEMENT

  • Lobster Dinner
    It's the Youngstown way of doing things
  • Lobster Dinner?
    Please let me know which ITT Financial Aid Office is getting lobster dinners because we certainly are not getting them at the ITT Financial Aid Office I work in. I think I need to transfer to that office instead of getting the leftovers from the student appreciation pizzas.
    • do not go there
      Do NOT pay over $400 a credit hour at ITT. There are more affordable options out there. IUPUI is at about $241 a credit hour, Ivy Tech is like $100 to $200 a credit hour.. take the credit hour and times it by 3cr hr. an average class is 3 credit hours... please stop and consider options. for an undergrad degree, you are only aloud a max of $57,000. you will max out and not even have a degree at ITT. It is not worth the money, trust me I went there and wasted a whole year, and couldnt even transfer my credits... :(
    • lack of equipment
      I go here. They say it's education for the future? We are using old outdated software and out we have to use our teacher's own personal camera for film and video production class. ITT allows the Financial Aid department to have Lobster dinner that cost $715!

      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:
       
      thisissue1-092914.jpg 092914

      Subscribe to IBJ
      1. On my rental property, before tax caps, I was paying $2,000/yr in property taxes. After the tax caps I'm paying $4,000/yr. How exactly am I "benefiting the most"?

      2. Nick, I too tried that new Walmart NM on Michigan a couple of weeks ago. I had the same feeling, it had good prices, but something was just off about it. I can't put my finger on what it is, but it just didn't feel right. On the plus side, it was easy to get in and out of and much less busy than a typical Walmart.

      3. @Young Hoosier - you might want to check out the Paris skyline again....it's decidedly taller than 7-8 stories http://all-that-is-interesting.com/paris-skyline-photo

      4. Are you in need of Loan or financial help?, you need a loan for your business or to solve other monetary issues. James Lewis Loan Company started offering loans with a very low interest rate of 3% for a minimum of 15 years, Interested applicants should submit their request via email (jameslewisloan@gmail.com) for immediate processing with the information listed below: Names in full:................ Address:...................... Gender:.................... Email:........................ Phone Number:....... Amount Required:... Loan Duration:....... Country:................. Occupation:.................. ================================== In acknowledgment to these details, I will send you a well calculated Terms and Conditions for the amount you require. Warm Regards, Mr James Lewis

      5. So the GOP legislature passed a bill that gave big breaks to business at the expense of Indiana families. Color us not surprised.

      ADVERTISEMENT