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ITT Educational's profit drops on lower enrollment

NEW YORK (AP) -- ITT Educational Services Inc. reported a profit that fell by nearly half in the second quarter but said that new student enrollment was up, helping drive up its stock.

The Carmel, Ind.-based company, a for-profit school that provides education online and at more than 140 locations, said new student enrollment was up 7.5 percent. But total enrollment fell 11.7 percent to 58,617.

Like other for-profit education companies, ITT been shaken by tougher government oversight. Enrollments soared during the recession, but have shrunk in recent years as the Obama administration put in place new, stricter regulations on recruitment and marketing.

For the quarter ended in June, the company earned $20.9 million, or 89 cents per share. That's down from $46 million, or $1.96 per share, a year earlier. But the results in the latest quarter were a penny more than analysts expected, according to a survey by FactSet.

Revenue fell 21 percent to $259.9 million, lower than the $273.4 million analysts expected.

Shares of ITT Educational were up $1.26, or almost 5 percent, at $28.33 in morning trading. The stock has gained 64 percent in the year to date.