ITT withdraws 2014 forecast, shares fall
May 22 (Reuters) - ITT Educational Services Inc, a for-profit college operator, withdrew its full-year forecast and estimated a 4 percent fall in new student enrollments in the first quarter, sending its shares down as much as 17 percent.
ITT said it was withdrawing its forecast due to uncertainties related to the accounting of its PEAKS private student loan program and its guarantee obligations under it.
The company is yet to file its 2013 annual report due to the same reason.
The fall in new student enrollments would be the first in four quarters. The company said it expected new student enrollments to have fallen to 16,746 in the first quarter ended March 31 from 17,412, a year earlier.
ITT said total student enrollments were expected to have fallen 6 percent to 57,125.
The company's shares were down 11 percent at $22.95 in morning trading on the New York Stock Exchange on Thursday.
The stock has lost one-fourth of its value since the end of February, when the U.S. consumer bureau sued ITT over student loans. (Reporting by Mridhula Raghavan in Bangalore; Editing by Kirti Pandey)
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