NASDAQ: ITT Reports Jump in Earnings, Sending Shares Soaring

Career College Central Summary:

  • Embattled for-profit educator ITT Educational Services Inc. reported on Friday a jump in profit in its March quarter as its shrinking footprint translated into lower expenses, sending shares soaring in morning trading.
  • Shares of the company, down 43% this year, jumped 31% to $5.45 a share.
  • ITT said the delayed filing brings it up-to-date on its required reports with the Securities and Exchange Commission.
  • For the quarter ended March 31, ITT reported a profit of $10.4 million, or 44 cents a share, up from $3.6 million, or 15 cents a share, a year earlier.
  • Through its legal fees and a provision for loan losses increased in the quarter, total expenses fell 10%.
  • ITT said it had fewer employees to compensate, fewer physical locations and reduced media advertising expenses in the quarter, among other things.
  • Operating margin more than doubled to 12% from 5.5% a year earlier.
  • Revenue in the period edged down 3.3% to $230 million as total student enrollment declined 10.4% from a year earlier.
  • The results come a month after the SEC announced fraud charges against ITT and two of its top executives, alleging that they misled investors about the looming financial impact of two badly-performing student-loan programs.

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