Vocational education Universal Technical Institute (NYSE: UTI) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
Universal Technical Institute beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $201.4 million, up 15.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. It reported 5,313 new students, up 22.3% year on year.
Is Universal Technical Institute a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Universal Technical Institute’s revenue to grow 6.6% year on year to $196.4 million, slowing from the 12.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Universal Technical Institute has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Universal Technical Institute’s peers in the education services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Strategic Education delivered year-on-year revenue growth of 4.6%, beating analysts’ expectations by 1%, and Laureate Education reported a revenue decline of 14.2%, topping estimates by 4.9%. Strategic Education’s stock price was unchanged after the resultswhile Laureate Education was up 11.2%.
Read our full analysis of Strategic Education’s results here and Laureate Education’s results here.
There has been positive sentiment among investors in the education services segment, with share prices up 9.2% on average over the last month. Universal Technical Institute is up 16.8% during the same time and is heading into earnings with an average analyst price target of $33.17 (compared to the current share price of $29.90).
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