Lifting some pressure off the struggling sector of U.S. for-profit education, ITT Educational Services (ESI.N) more students signed up with them than previously estimated in the quarter ended June and it was because of an increase in its scholarships.
The data showed that the shares of ITT made a sharp upward turn to about 60 percent on Friday afternoon. This has been the first data from the company since May and showed that it had more than doubled the shares of the company in the trading that morning.
This year has been marked by the battery of the for-profit education industry by more regulatory scrutiny. The sector’s downfall happened in 2010 when government investigations uncovered low job prospects, but a high load of student-debts.
Having withdrawn its forecast for 2014 in May and warned that a fall in the number of enrollments will happen again, ITT stated that for this year, it has offered an estimated 40 percent more scholarships.
It should be remembered that up to Wednesday’s close, ITT’s shares had dropped 72 percent since it withdrew its forecast on May 22. Now the stock has leapt by as much as 50 percent on Thursday after the company stated that discussions will be held for preliminary results on Friday.