Lincoln Educational Services Corp. (LINC), the for-profit college company with 45 campuses in 17 states, said first-quarter profit declined 28 percent and cut its annual revenue forecast as student enrollment declined.
Net income dropped to $10.4 million, or 46 cents a share, from $14.5 million, or 55 cents, a year earlier, the West Orange, New Jersey-based company said today in a statement. The college operator cut its 2011 revenue forecast to $565 million to $585 million from $600 million to $615 million and said it expects new student enrollments to fall as much as 16 percent this year.
For-profit colleges are facing scrutiny from regulators and lawmakers who say some universities aren’t adequately preparing students for employment and graduates can’t repay their federally backed loans.
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