IBJNews

Profit plummets at ITT Educational, but tops analyst expectations

Back to TopCommentsE-mailPrintBookmark and Share

First-quarter profit plunged nearly 29 percent at ITT Educational Services Inc., but still exceeded Wall Street’s dismal expectations.

The Carmel-based operator of for-profit technical colleges earned $61.1 million during the quarter ended March 31, down from $85.4 million in the same quarter a year earlier.

On a per-share basis, ITT Educational’s quarterly earnings fell from $2.91 a year ago to $2.38.

Wall Street analysts expected earnings per share of $2.13, according to a survey by Thomson Reuters. ITT was able to lifts its earnings by 8 cents per share by repurchasing more than 2 million shares of its common stock during the quarter.

Market expectations have been low mainly because enrollment of new students has been declining for seven straight quarters at ITT’s more than 140 campuses around the country. A recession-induced wave of students that flocked to the schools has been ebbing.

New-student enrollment declined 17 percent in the first quarter compared with a year ago, to 18,067 students. Overall enrollment fell 15 percent, to 71,123.

The Obama administration and Senate Democrats have focused a bright light on the recruiting practices of for-profit colleges and the debt loads their students rack up. That attention also slowed enrollment.

ITT’s revenue in the quarter fell 11 percent, to $341.8 million, but that also exceeded analysts’ expectations. They predicted revenue of $335 million.

The higher revenue was driven in part by ITT’s ability to generate more revenue from each of its students. Revenue per student rose 3 percent compared with the first quarter last year, to $4,666.

Shares of ITT Educational’s stock closed Wednesday at $62.41 apiece. The price has risen nearly 10 percent this year.
 

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. what Steve is doing and if he is on another radio station. That is the station I will listen to.

  2. From the story: "The city of Indianapolis also will consider tax incentives and funding for infrastructure required for the project, according to IEDC." Why would the City need to consider additional tax incentives when Lowe's has already bought the land and reached an agreement with IEDC to bring the jobs? What that tells me is that the City has already pledged the incentives, unofficially, and they just haven't had time to push it through the MDC yet. Either way, subsidizing $10/hour jobs is going to do nothing toward furthering the Mayor's stated goal of attracting middle and upper-middle class residents to Marion County.

  3. Ron Spencer and the entire staff of Theater on the Square embraced IndyFringe when it came to Mass Ave in 2005. TOTS was not only a venue but Ron and his friends created, presented and appeared in shows which embraced the 'spirit of the fringe'. He's weathered all the storms and kept smiling ... bon voyage and thank you.

  4. Not sure how many sushi restaurants are enough, but there are three that I know of in various parts of downtown proper and all are pretty good.

  5. First off, it's "moron," not "moran." 2nd, YOU don't get to vote on someone else's rights and freedoms that are guaranteed by the US Constitution. That's why this is not a state's rights issue...putting something like this to vote by, well, people like you who are quite clearly intellectually challenged isn't necessary since the 14th amendment has already decided the issue. Which is why Indiana's effort is a wasted one and a waste of money...and will be overturned just like this has in every other state.

ADVERTISEMENT