Barclays Reiterates an 'Equalweight' on ITT Corp. (ITT); Thoughts Ahead of 1Q'11; Adjust Estimates

Barclays�reiterates an 'Equalweight' on ITT Corp. (NYSE: ITT), PT lowered from $76 to $72.

Barclays analyst says, "The primary change is that we reduced our new student starts expectation, and now forecast y/y declines to continue throughout 2011 before rebounding modestly in 2012. We now expect total enrollment y/y declines to continue through 1H'12, which drove more negative operating leverage in 2012 than in our prior forecast. As a result, we have reduced our 2011 and 2012 EPS estimates by $0.02/$0.60 to $9.28 and $7.40, or -17% and -20% y/y, respectively."

"Regarding 1Q'11, we expect further enrollment deterioration and an acceleration of negative operating leverage amid a continued challenging operating environment. Aggressive buybacks over the past year will blunt the negative impact on 1Q'11 EPS as we expect a 1% y/y increase to $2.48. This is below the consensus $2.54, which ESI may achieve if it continued its recent pace of buybacks in 1Q'11."

For more ratings news on ITT Corp. click here and for the rating history of ITT Corp. click here.

Shares of ITT Corp. closed at $59.00 yesterday.

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