ITT Educational Services 1Q Profit Jumps 45 Pct

CARMEL, Ind. (AP) — ITT Educational Services Inc. said Thursday its first-quarter profit rose 45 percent due to a big jump in new student enrollment and an improvement in student retention.

ITT, which provides technology-oriented postsecondary degree programs for students in 37 states, said net income rose to $61.9 million, or $1.59 per share, compared with $42.6 million, or $1.08 per share in the prior-year quarter.

Analysts polled by Thomson Reuters expected profit of $1.41 per share.

Revenue climbed 23 percent to $288 million from $234.9 million. Analysts predicted revenue of $285.2 million.

The company said its results were helped by a 37 percent increase in new student enrollment. More students are also opting to stay enrolled.

ITT said it was able to spend far less than expected on advertising due to a favorable advertising market. The company also said its students were able to access federal and private financing during the period.

For the full year, the company said it is raising its profit guidance to between $7 and $7.25 per share, up from $6.50 to $6.75 per share.

Analysts see profit of $6.61 per share for the year.

Separately, the company said it agreed to buy Daniel Webster College. The terms of the deal, expected to close in early July, were not disclosed.

Shares rose $3.62 or 3.6 percent, to $105.58 in morning trading.