May 5 (Bloomberg) -- Lincoln Educational Services Corp., 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.
Lincoln shares fell 77 cents, or 4.7 percent, to $15.80 at 10:09 a.m. in Nasdaq Stock Market composite trading in New York.
To contact the reporter on this story: Janet Lorin in New York firstname.lastname@example.org.
To contact the editor responsible for this story: Jonathan Kaufman at email@example.com.