ITT Educational Services Inc., a for-profit college company with a technology focus, fell to its lowest price in almost 12 years after reporting a fourth-quarter loss and a drop in new enrollment.
The shares tumbled 13 percent to $12.44 at 10:22 a.m. in New York after declining to $11.69, the lowest intraday since Jan. 26, 2001. The stock had lost 78 percent of its value in the 12 months through yesterday.
ITT today reported a quarterly net loss of $9.47 million, or 41 cents a share, compared with net income of $76 million, or $2.87, a year earlier. Sales at the Carmel, Indiana-based company slid 18 percent to $300.8 million as new enrollment declined 11 percent to 13,398.
For-profit colleges, once among the fastest-growing U.S. industries, are closing campuses as scrutiny over their sales tactics to students and competition from state university online programs hurt enrollment and drive down stock prices.