This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ITT Educational's Profit Falls 36 Percent

CARMEL, Ind. (AP) â¿¿ ITT Educational Services Inc. said Thursday that its third-quarter net income fell 36 percent as enrollment fell amid stricter federal regulations that hold for-profit online schools more accountable for graduation rates and job placement.

The Carmel, Ind.-based company also lowered its guidance for the year, but the profit nevertheless beat Wall Street expectations and shares of ITT rose almost 8 percent to $27.06.

For the three months ended Sept. 30, the company earned $42.9 million, or $1.83 per share. That's compared with $67.3 million, or $2.48 per share, in the same period last year.

Total revenue fell 13 percent to $314.7 million. Analysts on average expected a profit of $1.79 per share on revenue of $318.2 million.

New student enrollment fell 16 percent to 19,298, while total student enrollment fell 17 percent to 65,662. The company said its operating margin, or income after costs, fell to 22.5 percent, from 30.5 percent.

ITT now expects to earn between $8 and $8.10 per share, down from the $8 to $9 range it previously forecast.

ITT offers degrees in subjects such as computer programing and Web development through its ITT Technical Institutes and Daniel Webster Colleges. The broader for-profit education industry saw enrollment rise during the recession as unemployment rose and people sought new skills to improve their job prospects. But the industry has recently been hit by regulatory changes and criticism that the schools were leaving students saddled with huge college loans and slim job prospects.

Under new rules, colleges must meet certain performance criteria or risk losing access to federal student loans. A number of for-profit education companies have stiffened enrollment guidelines, and that has cut into enrollment and profitability.
Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,719.92 -78.57 -0.44%
S&P 500 2,080.41 -9.70 -0.46%
NASDAQ 5,108.6660 -18.8590 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs