Universal Technical Institute Earnings: Here’s Why Shares are Down Now

Universal Technical Institute Inc. (NYSE:UTI) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.43%.

Universal Technical Institute Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 75% to $0.01 in the quarter versus EPS of $0.04 in the year-earlier quarter.

Revenue: Decreased 8.63% to $91 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Universal Technical Institute Inc. reported adjusted EPS income of $0.01 per share. By that measure, the company beat the mean analyst estimate of $0. It beat the average revenue estimate of $90.24 million.

Quoting Management: “The renewed health of the transportation industry has increased demand for our graduates and made the value of a UTI education clear to potential students and their families. Our new partnership with GM and the recent expansion of our Mercedes-Benz and Porsche programs are strong indicators of rising demand, and our third-quarter increase in applications tells us students are taking note,” said Kim McWaters, chief executive officer. “UTI continues to be the industry’s choice for providing highly trained technicians, and our focus remains on efficiently and cost-effectively making a UTI education accessible and affordable for more students.”

Key Stats (on next page)…

Revenue decreased 4.29% from $95.08 million in the previous quarter. EPS increased to $0.01 in the quarter versus EPS of $-0.04 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.05 to a profit $0.07. For the current year, the average estimate has moved down from a profit of $0.21 to a profit of $0.19 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)