Thread regarding ITT Educational Services Inc. layoffs

"ITT Educational Services Inc, a for-profit college operator, withdrew its full-year forecast and warned of a fall in new enrollment after rising for three straight quarters, adding to the uncertainty surrounding the sector. The company lost a third of its market value after ITT Educational said the fall in new enrollment would continue in the current quarter. Shares of other education companies such as Strayer Education Inc, DeVry Education Group Inc, Career Education Corp and Grand Canyon Education Inc also fell by up to 5 percent. ITT estimated a 4 percent fall in new student enrollments to 16,746 in the first quarter ended March 31. The company said it expected total student enrollments to have fallen 6 percent to 57,125. 'The stock is reacting like (ITT) is going to go out of business,' said Wells Fargo analyst Trace Urdan. He said the reported results did not warrant such a huge sell-off. *ITT said it lost several recruitment days and received fewer inquiries in the first quarter due to the severe winter in the United States.*** The company expects new enrollment to fall 10-15 percent in the current quarter ending June, Chief Executive Kevin Modany said on a conference call."