May 22 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
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
(Reporting by Mridhula Raghavan in Bangalore; Editing by Kirti