Time New York: Thu 22 Feb 01:58 am  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

Universal Technical (UTI) Q1 Earnings Miss, Enrollment Down

Zacks

Universal Technical Institute, Inc. UTI reported adjusted loss of 21 cents per share in the first quarter of fiscal 2018, wider than the Zacks Consensus Estimate of a loss of 9 cents. The reported loss was also wider than the year-ago loss of 9 cents.

Revenues & Enrollment

Revenues of $81.2 million in the first quarter decreased 3.6% from $84.2 million in the prior-year quarter. The decline was caused by a 5.8% drop in average student enrollment.

Total starts fell 7.1% year over year during the quarter.

Operating Highlights

The company reported operating loss of $3.6 million compared with an operating loss of $1.4 million in the prior-year quarter. The downside was primarily a result of reduced revenues and increased in advertising, contract services and professional services expenses, partially offset by lower compensation expenses.

Operating expenses rose 2.4% to $84.8 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) were $0.8 million compared with $6.3 million in the prior-year quarter.

Financials

The company had cash and cash equivalents, and investments of $86.5 million as of Dec 31, 2017, compared with $50.1 million as of Sep 30, 2017.

Fiscal 2018 Guidance Reaffirmed

Universal Technical expects new student starts growth in low-single digits. The average student population is likely to decline mid-single digits.

Revenues are expected in the $310-$320 million range for the year.

Operating expenses is projected in the range of $340 million to $345 million, reflecting an increase of $14-$19 million from fiscal 2017.

Universal Technical expects to incur operating loss between $20 million and $25 million and negative EBITDA.

Capital expenditures are expected between $24 million and $25 million for the year ending Sep 30, 2018. This includes approximately $11 million from New Jersey campus that is expected to open in the fall of 2018; and approximately $4 million to expand welding program to two additional campuses, $7 million for new and replacement equipment for existing campuses; and approximately $2.5 million for real estate consolidation.

Universal Technical Institute Inc Price, Consensus and EPS Surprise

Zacks Rank & Upcoming Peer Releases

Universal Technical carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Public Education APEI is scheduled to report fourth-quarter 2017 results on Feb 27. The Zacks Consensus Estimate for earnings is pegged at 33 cents, down 21.4% year over year.

Strayer Education STRA is expected to report fourth-quarter 2017 results on Feb 15. The Zacks Consensus Estimate for earnings is pegged at $1.28, up 34.7% year over year.

Capella Education CPLA is slated to report fourth-quarter 2017 results on Feb 13. The Zacks Consensus Estimate for earnings is pegged at $1.03, up 6.2% year over year.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.

Automatically Feed Your Blog