Vocational education Universal Technical Institute (NYSE: UTI) will be reporting earnings this Wednesday after the bell. Here’s what investors should know.
Universal Technical Institute beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $207.4 million, up 12.6% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. It reported 6,650 new students, up 21.4% 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 12.8% year on year to $200.2 million, slowing from the 15.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Universal Technical Institute has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 2.8% on average.
Looking at Universal Technical Institute’s peers in the education services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Laureate Education delivered year-on-year revenue growth of 5%, beating analysts’ expectations by 1.5%, and Bright Horizons reported revenues up 9.2%, topping estimates by 1.1%. Laureate Education’s stock price was unchanged after the resultswhile Bright Horizons was up 10.4%.
Read our full analysis of Laureate Education’s results here and Bright Horizons’s results here.
There has been positive sentiment among investors in the education services segment, with share prices up 2.5% on average over the last month. Universal Technical Institute’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $37.33 (compared to the current share price of $31.65).
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