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Universal Technical's (UTI) Q1 Loss Wider Than Expected
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Universal Technical Institute, Inc. (UTI - Free Report) recently reported fiscal first-quarter 2019 results, wherein loss of 17 cents per share was wider than the Zacks Consensus Estimate of 11 cents. The reported loss also widened from the year-ago level.
Nevertheless, quarterly revenues of $83.1 million surpassed the consensus mark of $81.3 million by 2.2%. Moreover, revenues increased 2.3% from the prior-year quarter, attributable to additional earning day and higher average tuition. Total starts also rose 14.8% year over year to 1,511 during the quarter.
Universal Technical Institute Inc Price, Consensus and EPS Surprise
Operating expenses of $90.3 million grew 6.5% from a year ago due to $4.2 million rise in one-time transformation consultant termination cost. Rising student population at the Bloomfield campus contributed $1.6 million to the company’s direct costs.
Adjusted operating loss in the quarter was $3 million compared with $1.9 million in the prior-year period.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) declined 50% to $1.3 million from the prior-year figure of $2.6 million.
Financial Highlights
As of Dec 31, 2018, the company had cash and cash equivalents of $58.6 million compared with $58.1 million recorded in the corresponding period of last year.
Net cash provided by operations came in at $4.4 million in the fiscal first quarter compared with net cash used in operations of $2.6 million a year ago. Adjusted free cash flow of $5.6 million improved significantly from the prior-year quarter.
Reiterate Fiscal 2019 Outlook
Universal Technical expects mid-high single digit new student starts growth across its existing campuses, including the new Bloomfield, NJ campus. The average student population is likely to rise in low-single digits.
Fiscal 2019 revenues are expected in the range of $322-$332 million. Operating expenses are projected in the range of $337-$347 million.
Universal Technical expects to incur operating loss between $10 million and $15 million. Moreover, adjusted operating loss is anticipated in the range of $6-$11 million.
Adjusted EBITDA is anticipated in the range of $9-$15 million. Capital expenditure for fiscal 2019 is likely to be between $6 million and $8 million (versus $8-$10 million expected earlier).
Zacks Rank & Key Picks
Universal Technical currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Schools industry are GP Strategies Corporation , K12 Inc. (LRN - Free Report) and Bright Scholar Education Holdings Limited (BEDU - Free Report) . While GP Strategies sports a Zacks Rank #1 (Strong Buy), K12 and Bright Scholar both carry a Zacks Rank #2 (Buy). You can the complete list of today’s Zacks #1 Rank stocks here.
GP Strategies has an expected earnings growth rate of 59.8% for 2019.
K12’s earnings per share are expected to increase 16.2% in fiscal 2019.
Bright Scholar is expected to record an EPS growth rate of 27.3% in fiscal 2019.
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Universal Technical's (UTI) Q1 Loss Wider Than Expected
Universal Technical Institute, Inc. (UTI - Free Report) recently reported fiscal first-quarter 2019 results, wherein loss of 17 cents per share was wider than the Zacks Consensus Estimate of 11 cents. The reported loss also widened from the year-ago level.
Nevertheless, quarterly revenues of $83.1 million surpassed the consensus mark of $81.3 million by 2.2%. Moreover, revenues increased 2.3% from the prior-year quarter, attributable to additional earning day and higher average tuition. Total starts also rose 14.8% year over year to 1,511 during the quarter.
Universal Technical Institute Inc Price, Consensus and EPS Surprise
Universal Technical Institute Inc Price, Consensus and EPS Surprise | Universal Technical Institute Inc Quote
Operating Highlights
Operating expenses of $90.3 million grew 6.5% from a year ago due to $4.2 million rise in one-time transformation consultant termination cost. Rising student population at the Bloomfield campus contributed $1.6 million to the company’s direct costs.
Adjusted operating loss in the quarter was $3 million compared with $1.9 million in the prior-year period.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) declined 50% to $1.3 million from the prior-year figure of $2.6 million.
Financial Highlights
As of Dec 31, 2018, the company had cash and cash equivalents of $58.6 million compared with $58.1 million recorded in the corresponding period of last year.
Net cash provided by operations came in at $4.4 million in the fiscal first quarter compared with net cash used in operations of $2.6 million a year ago. Adjusted free cash flow of $5.6 million improved significantly from the prior-year quarter.
Reiterate Fiscal 2019 Outlook
Universal Technical expects mid-high single digit new student starts growth across its existing campuses, including the new Bloomfield, NJ campus. The average student population is likely to rise in low-single digits.
Fiscal 2019 revenues are expected in the range of $322-$332 million. Operating expenses are projected in the range of $337-$347 million.
Universal Technical expects to incur operating loss between $10 million and $15 million. Moreover, adjusted operating loss is anticipated in the range of $6-$11 million.
Adjusted EBITDA is anticipated in the range of $9-$15 million. Capital expenditure for fiscal 2019 is likely to be between $6 million and $8 million (versus $8-$10 million expected earlier).
Zacks Rank & Key Picks
Universal Technical currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Schools industry are GP Strategies Corporation , K12 Inc. (LRN - Free Report) and Bright Scholar Education Holdings Limited (BEDU - Free Report) . While GP Strategies sports a Zacks Rank #1 (Strong Buy), K12 and Bright Scholar both carry a Zacks Rank #2 (Buy). You can the complete list of today’s Zacks #1 Rank stocks here.
GP Strategies has an expected earnings growth rate of 59.8% for 2019.
K12’s earnings per share are expected to increase 16.2% in fiscal 2019.
Bright Scholar is expected to record an EPS growth rate of 27.3% in fiscal 2019.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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