Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

ITT Educational Drops After Enrollment Decline Hurts Revenue

ITT Educational Drops After Enrollment Decline Hurts Revenue
ITT Educational Services Inc. headquarters stand in Indianapolis, Indiana. Photographer: Victor J. Blue/Bloomberg

Jan. 24 (Bloomberg) -- 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.

To contact the reporter on this story: Lisa Wolfson at lwolfson@bloomberg.net

To contact the editor responsible for this story: Lisa Wolfson at lwolfson@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.