Universal Technical Institute
The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Universal Technical Institute met expectations on revenue and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Universal Technical Institute logged revenue of $106.4 million. The eight analysts polled by S&P Capital IQ looked for revenue of $105.4 million. Sales were 9.4% lower than the prior-year quarter's $117.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.16. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.26 per share. GAAP EPS of $0.16 for Q1 were 62% lower than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 51.4%, 280 basis points worse than the prior-year quarter. Operating margin was 6.2%, 810 basis points worse than the prior-year quarter. Net margin was 3.8%, 490 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $102.3 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $412.0 million. The average EPS estimate is $0.81.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 364 members out of 409 rating the stock outperform, and 45 members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 144 give Universal Technical Institute a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Technical Institute is hold, with an average price target of $13.67.
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