* Q2 EPS $1.96 vs est $2.18
* Revenue $329.8 mln vs est $339.4 mln
* New enrollment down 9.5 pct
* Operating margin down to 23.5 pct
July 26 ITT Educational Services Inc's
quarterly results missed analysts' expectations, as student
enrollment at the for-profit college chain continued to decline.
The company, which runs the ITT Technical Institutes and
Daniel Webster College, said new student sign-ups fell 9.5
percent to 15,698 new students during the quarter. Total
enrollment was down 16 percent to 66,397 students, as of June
Enrollments at for-profit colleges have taken a hit after
colleges tightened their admission policies to meet stricter
regulatory requirements aimed at reducing student debt.
Prospective students are also getting increasingly averse to
the idea of taking on costly education loans, given the high
unemployment rates, forcing colleges to spend more on
scholarships and other incentives to lure new students.
Operating margin fell to 23.5 percent from 33.5 percent last
Net income fell to $46 million, or $1.96 per share for the
second-quarter, from $79 million, or $2.85 per share, a year
Revenue fell 15 percent to $329.8 million.
Analysts were expecting earnings of $2.18 per share on
revenue of $339.4 million, according to Thomson Reuters I/B/E/S.
Shares on the company closed at $50.43 on Wednesday on the
New York Stock Exchange.