Universal Technical Institute
The 10-second takeaway
For the quarter ended June 30 (Q3), Universal Technical Institute met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. GAAP earnings per share shrank significantly.
Gross margins increased, operating margins contracted, net margins dropped.
Universal Technical Institute recorded revenue of $91.0 million. The six analysts polled by S&P Capital IQ foresaw sales of $90.2 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $99.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.01. The six earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share. GAAP EPS of $0.01 for Q3 were 75% lower than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 56.8%, 50 basis points better than the prior-year quarter. Operating margin was 0.5%, 100 basis points worse than the prior-year quarter. Net margin was 0.3%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $97.7 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $382.2 million. The average EPS estimate is $0.21.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 355 members out of 394 rating the stock outperform, and 39 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 118 give Universal Technical Institute a green thumbs-up, and eight 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 $9.75.
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