ITT Educational posts loss as student sign-ups slip
Jan 24 (Reuters) - For-profit education provider ITT Educational Services Inc reported a quarterly loss as it signed up fewer students and costs jumped 30 percent, sending its shares down 9 percent before the bell.
The company, which runs the ITT technical institutes and Daniel Webster College, said new enrollments fell 11 percent in the fourth quarter.
Total costs during the fourth quarter jumped 30 percent to $316.8 million.
Stricter admission policies and low job-placement rates have led to steadily falling enrollments, forcing for-profit colleges to ramp up their spend on marketing and freeze tuition fees.
The net loss for the quarter was $9.5 million, or 41 cents per share, compared with net profit of $76.0 million, or $2.87 per share, a year ago.
Revenue fell 18 percent to $300.8 million.
The company's shares were trading at $13 in premarket trading. The stock has fallen more than 75 percent in the last year and is trading at levels last seen in 2002.