ITT Educational Ups 2011 Profit Outlook

ITT Educational Services Inc’s new student enrollment fell 14 percent in the July-September quarter, but the for-profit college chain raised its full-year profit outlook.

The company said its 2011 internal goal for earnings was $10.40-$10.60 per share, up from its prior view of $10-$10.50 a share.

On Wednesday, ITT’s bigger rival Apollo Group said new student sign-ups slid for a fifth straight quarter, but signalled it was turning a corner and forecast growth for that metric from its current quarter.

ITT’s third-quarter net income was $67.3 million, or $2.48 a share, compared with $93.2 million, or $2.82 a share, a year ago.

Revenue fell 10 percent to $360.6 million.

Analysts on an average were expecting earnings of $2.28 a share on revenue of $360.9 million, according to Thomson Reuters I/B/E/S.

Total student enrollment fell 10 percent to 79,219 as of Sept. 30.

REUTERS

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