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Sinking enrollment still a drag on ITT Educational

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ITT Educational Services Inc., one of the country's largest for-profit colleges, saw profit and revenue drop dramatically in the first quarter as student enrollment continued to decline.

The Carmel-based company said Thursday morning that it earned $31.1 million, or $1.33 per share, in the latest quarter, down 49 percent from the same period a year earlier. Revenue fell nearly 16 percent, to $287.7 million.

Despite the declines, the performance exceeded the expectations of analysts, who predicted $277 million in revenue and $1.26 per share in earnings.

Total student enrollment at the end of the first quarter was 61,039, down from 71,123 a year earlier, a decline of 14.2 percent.

ITT and other for-profit educators have struggled to maintain enrollment due to federal scrutiny of their recruiting and student-loan practices. The schools enjoyed huge gains during the Great Recession.

Analysts predict continuing declines for the industry.

ITT is also suffering additional legal problems related to its loan programs.

ITT stock was up 9 percent early Thursday, to $16.75 per share. The stock traded at more than $65 a share a year ago.



 
 

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  1. In reality, Lilly is maintaining profit by cutting costs such as Indiana/US citizen IT workers by a significant amount with their Tata Indian consulting connection, increasing Indian H1B's at Lillys Indiana locations significantly and offshoring to India high paying Indiana jobs to cut costs and increase profit at the expense of U.S. workers.

  2. I think perhaps there is legal precedence here in that the laws were intended for family farms, not pig processing plants on a huge scale. There has to be a way to squash this judges judgment and overrule her dumb judgement. Perhaps she should be required to live in one of those neighbors houses for a month next to the farm to see how she likes it. She is there to protect the people, not the corporations.

  3. http://www.omafra.gov.on.ca/english/engineer/facts/03-111.htm Corporate farms are not farms, they are indeed factories on a huge scale. The amount of waste and unhealthy smells are environmentally unsafe. If they want to do this, they should be forced to buy a boundary around their farm at a premium price to the homeowners and landowners that have to eat, sleep, and live in a cesspool of pig smells. Imagine living in a house that smells like a restroom all the time. Does the state really believe they should take the side of these corporate farms and not protect Indiana citizens. Perhaps justifiable they should force all the management of the farms to live on the farm itself and not live probably far away from there. Would be interesting to investigate the housing locations of those working at and managing the corporate farms.

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