ITT Educational’s enrollment, profit fall again

Back to TopCommentsE-mailPrintBookmark and Share

ITT Educational Services Inc. saw enrollment and profit continue to slip in the third quarter, but again managed to beat the expectations of Wall Street.

The Carmel-based operator of for-profit colleges announced Thursday morning that it earned $67.3 million in the third quarter ended Sept. 30, a 27.8-percent drop from the same period a year ago. That translated to earnings per share of $2.48 compared with $2.82 per share in the third quarter of 2010.

Analysts expected earnings per share of $2.28 in the most recent quarter.

Enrollment of new students in the quarter fell 14.1 percent compared with the same period last year, to 22,909. Overall, ITT’s enrollment declined 10 percent, to 79,219.

Quarterly revenue also decreased 10 percent, to $360.6 million.

ITT has seen year-over-year enrollment declines for the last five quarters and decreasing profit for the past three periods.

Enrollment has declined at for-profit colleges ever since 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 5.5 percent in the third quarter of 2010 to 3.8 percent in the most recent period.

ITT’s stock had been on a tear, rising to a 52-week high of $95.52 in mid-July. But shares have tumbled since then, falling 33 percent to a Thursday opening price of $64.32.

ITT adjusted its earnings goal this year from a range of $10 to $10.50 per share to $10.40 to $10.60 per share.


  • Itt Tech
    I just finish my associate in ITT tech Austin,my plan was continue on the bachelor prog. but with no labs apropiate equpmenst, big no licence teachers some semesters, and in top they decide to short one quater and increase the hour class, All this push students no continiu on Bachelors program.

Post a comment to this story

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

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
Subscribe to IBJ