What to Note Ahead of Universal Technical's (UTI) Q4 Earnings?
Universal Technical Institute, Inc. UTI is slated to report fourth-quarter fiscal 2023 results on Nov 15, after market close.
In the fiscal third quarter, the company’s top and bottom lines surpassed the Zacks Consensus Estimate by 2.3% and 37.5%, respectively. On a year-over-year basis, revenues increased by 51.8%. UTI reported a loss of 1 penny per share in the year-ago quarter.
Its earnings topped the consensus mark in the trailing seven quarters.
Trend in Estimate Revision
The Zacks Consensus Estimate for the fiscal fourth quarter’s earnings has remained stable at 12 cents per share in the past 60 days. The estimated figure indicates a 33.3% decrease from the year-ago quarter’s figure of 18 cents per share.
Universal Technical Institute Inc Price and EPS Surprise
Universal Technical Institute Inc price-eps-surprise | Universal Technical Institute Inc Quote
The consensus mark for revenues is $166.5 million, suggesting 50.5% year-over-year growth.
Factors to Note
Universal Technical’s fiscal fourth-quarter revenues are likely to have increased on a year-over-year basis, primarily backed by the acquisition of the Concorde. For the fiscal fourth quarter, the company expects a seasonally higher start quarter, especially for the Concorde, as there are larger clinical starts in both July and September versus one larger clinical start in the other quarters.
It also expects approximately 3,500 new student starts for Concorde in the fourth quarter compared with nearly 2,000 starts in both the second and third quarters of this year. The company expects same-store improvements in overall double-digit UTI start growth in the fiscal fourth quarter.
However, margins are likely to have been pressurized owing to higher costs and expenses.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for UTI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here, as you will see below.
Earnings ESP: Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: UTI currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Some Recent Consumer Discretionary Releases
Strategic Education, Inc. or SEI STRA, reported impressive results for third-quarter 2023. Its quarterly earnings and revenues topped their respective Zacks Consensus Estimate and increased year over year.
Growth across its three segments, led by continued enrollment improvement in U.S. Higher Education, driven significantly by employer-affiliated enrollment, strong growth in Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand, drove the result.
Adtalem Global Education Inc. ATGE reported impressive results for first-quarter fiscal 2024. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given solid enrollment growth and strategic initiatives.
The company's accelerated performance across five operational pillars highlights its market-leading scale and healthcare focus. ATGE also raised its fiscal 2024 guidance. With 80,000 students and 300,000 alumni, it is well-equipped to address critical healthcare provider shortages.
American Public Education, Inc. APEI delivered strong earnings in third-quarter 2023. The bottom line handily surpassed the Zacks Consensus Estimate on the back of contributions from the American Public University System, Hondros College of Nursing segment and Graduate School.
Revenues also beat the analysts’ expectations and jumped year over year.
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