For-Profit Education Stocks Are Getting Killed

Shares of for-profit education companies are getting killed after ITT Educational (ESI) withdrew its full-year outlook. ITT shares are down 25% in afternoon trade.

ITT cited uncertainty related to inquiries from the SEC regarding its accounting treatment of an entity involved in its PEAKS Private Student Loan Program.

In addition to pulling its outlook, ITT said was not able to file a timely reports with the SEC for its fiscal-year 2013 or the first quarter of 2014.

ITT's preliminary first quarter results also showed that total student enrollment had fallen 6.4% as of March 31.

Apollo Education, which owns The University of Phoenix, (APOL) is down 10% following the news.

Other for-profit education companies that are also lower include Career Education (CECO), Strayer Education (STRA), DeVry Education (DV), and Grand Canyon Education (LOPE).