IBJNews

ITT Educational's profit plunges, but tops analyst expectations

Back to TopCommentsE-mailPrintBookmark and Share

ITT Educational Services Inc. saw its profits drop 22 percent in the fourth quarter, but still exceeded analysts' expectations.

The Carmel-based operator of for-profit colleges earned $76 million in the quarter, or $2.87 per share, compared with $97.5 million, or $3.14 per share, in the same quarter of 2010. The per-share profit decline shrank because ITT has reduced its number of outstanding shares by about 4.5 million in the past year.

The per-share profit performance far exceeded ITT’s own predicted range of $2.13 to $2.33, which the company issued in October. The company also topped the predictions of Wall Street analysts, who were expecting profit of $2.31 per share, according to a survey by Thomson Reuters.

Revenue in the quarter totaled $368.3 million, a 10-percent decline from the $410 million ITT brought in a year ago. The company has been suffering enrollment declines as the wave of students that went back to school in the recession has been subsiding. Congressional scrutiny of the value of for-profit degrees also has taken its toll on enrollment.

ITT’s enrollment of new students totaled 15,125 in the fourth quarter, down by 14.7 percent compared with the same quarter a year ago.

For all of 2011, ITT posted revenue of $1.5 billion and profit of $308 million, a 17.7-percent decline from the previous year. Overall student enrollment fell in 2011 by 13.5 percent, to 73,255.

ITT’s earnings per share for the year totaled $11.13, a slight decline from the year before, when it posted earnings of $11.17 per share.

Shares of ITT closed Wednesday at $69.40 apiece. The stock price has soared by nearly 38 percent in the past five weeks, although it is still far below its July peak of $95.44.
 

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. I am so impressed that the smoking ban FAILED in Kokomo! I might just move to your Awesome city!

  2. way to much breweries being built in indianapolis. its going to be saturated market, if not already. when is enough, enough??

  3. This house is a reminder of Hamilton County history. Its position near the interstate is significant to remember what Hamilton County was before the SUPERBROKERs, Navients, commercial parks, sprawling vinyl villages, and acres of concrete retail showed up. What's truly Wasteful is not reusing a structure that could still be useful. History isn't confined to parks and books.

  4. To compare Connor Prairie or the Zoo to a random old house is a big ridiculous. If it were any where near the level of significance there wouldn't be a major funding gap. Put a big billboard on I-69 funded by the tourism board for people to come visit this old house, and I doubt there would be any takers, since other than age there is no significance whatsoever. Clearly the tax payers of Fishers don't have a significant interest in this project, so PLEASE DON'T USE OUR VALUABLE MONEY. Government money is finite and needs to be utilized for the most efficient and productive purposes. This is far from that.

  5. I only tried it 2x and didn't think much of it both times. With the new apts plus a couple other of new developments on Guilford, I am surprised it didn't get more business. Plus you have a couple of subdivisions across the street from it. I hope Upland can keep it going. Good beer and food plus a neat environment and outdoor seating.

ADVERTISEMENT