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Universal Technical Institute, Inc. (UTI - Free Report) reported mixed fourth-quarter fiscal 2023 results. Its earnings missed the Zacks Consensus Estimate, but revenues beat the same. On a year-over-year basis, both the top and bottom lines increased impressively.
The stock rose 4.75% in the after-hours trading session on Nov 14 as the company met or exceeded its full-year guidance across all the key metrics, mainly backed by three full quarters’ contributions from Concorde.
The company sees strong demand across both divisions in first-quarter fiscal 2024.
Inside the Numbers
Adjusted earnings of 10 cents per share lagged the consensus mark of 12 cents by 16.7% but rose significantly from the year-ago level of 3 cents.
Quarterly revenues of $170.3 million topped the consensus mark of $167 million by 2.3% and increased 53.9% from the prior-year quarter. The upside was mainly attributable to the acquisition of the Concorde business.
Universal Technical Institute Inc Price, Consensus and EPS Surprise
Total new student starts totaled 10,392, up 74.2% from 5,965 students reported a year ago.
Adjusted EBITDA was $19.2 million, up from $15.1 million reported a year ago.
Segment Highlights
UTI: Revenues from the segment grew 4.2% to $115.3 million year over year. New student starts totaled 6,500, up 9% from a year ago. Adjusted EBITDA was $24.9 million, up from $24.2 million reported a year ago.
Concorde: Revenues from the segment were $55 million during the reported period. New student starts came in at 3,892. Adjusted EBITDA for the segment totaled $3.99 million.
Fiscal 2023 Highlights
Universal Technical reported revenues of $607.4 million, which increased 45% year over year, backed by a $178.1 million contribution from the acquired Concorde business. The reported figure exceeded the company’s provided guidance of $602-605 million.
Earnings came in at 13 cents per share, down from 38 cents generated in fiscal 2022. Adjusted EBITDA in the fiscal year was $64.3 million compared with $60.2 million a year ago. Adjusted EBITDA came slightly ahead of the guided range of $62-$64 million.
New student starts increased to 22,613 from the prior-year level of 13,374.
Financial Highlights
At the end of fiscal 2023, the company had cash and cash equivalents of $151.5 million compared with $66.5 million on Sep 30, 2022.
Long-term debt is now $159.6 million, up from $66.4 million a year ago.
Net cash used in operations came in at $49.1 million in fiscal 2023 compared with $46 million recorded a year ago.
Adjusted free cash flow at fiscal 2023-end was $49.1 million versus $34.9 million at fiscal 2022-end.
Fiscal 2024 Outlook
Universal Technical expects new student starts in the 24,500-25,500 range, up 11% from fiscal 2023. Fiscal 2024 revenues are expected in the range of $705-$715 million, up 17% from the previous year.
Adjusted net income is projected in the range of $34-$38 million, reflecting growth of 193% year over year. It expects adjusted EBITDA in the range of $98-$102 million (up 56%) and adjusted free cash flow between $62 million and $66 million (up 30%).
Strategic Education, Inc. or SEI (STRA - Free Report) , reported impressive results for third-quarter 2023. Its quarterly earnings and revenues topped their respective Zacks Consensus Estimate and increased year over year.
Growth across its three segments, led by continued enrollment improvement in U.S. Higher Education, driven significantly by employer-affiliated enrollment, strong growth in Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand, drove the result.
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for first-quarter fiscal 2024. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given solid enrollment growth and strategic initiatives.
The company's accelerated performance across five operational pillars highlights its market-leading scale and healthcare focus. ATGE also raised its fiscal 2024 guidance. With 80,000 students and 300,000 alumni, it is well-equipped to address critical healthcare provider shortages.
American Public Education, Inc. (APEI - Free Report) delivered strong earnings in third-quarter 2023. The bottom line handily surpassed the Zacks Consensus Estimate on the back of contributions from the American Public University System, Hondros College of Nursing segment and Graduate School.
Revenues also beat the analysts’ expectations and jumped year over year.
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Universal Technical (UTI) Q4 Earnings Miss, '24 View Solid
Universal Technical Institute, Inc. (UTI - Free Report) reported mixed fourth-quarter fiscal 2023 results. Its earnings missed the Zacks Consensus Estimate, but revenues beat the same. On a year-over-year basis, both the top and bottom lines increased impressively.
The stock rose 4.75% in the after-hours trading session on Nov 14 as the company met or exceeded its full-year guidance across all the key metrics, mainly backed by three full quarters’ contributions from Concorde.
The company sees strong demand across both divisions in first-quarter fiscal 2024.
Inside the Numbers
Adjusted earnings of 10 cents per share lagged the consensus mark of 12 cents by 16.7% but rose significantly from the year-ago level of 3 cents.
Quarterly revenues of $170.3 million topped the consensus mark of $167 million by 2.3% and increased 53.9% from the prior-year quarter. The upside was mainly attributable to the acquisition of the Concorde business.
Universal Technical Institute Inc Price, Consensus and EPS Surprise
Universal Technical Institute Inc price-consensus-eps-surprise-chart | Universal Technical Institute Inc Quote
Total new student starts totaled 10,392, up 74.2% from 5,965 students reported a year ago.
Adjusted EBITDA was $19.2 million, up from $15.1 million reported a year ago.
Segment Highlights
UTI: Revenues from the segment grew 4.2% to $115.3 million year over year. New student starts totaled 6,500, up 9% from a year ago. Adjusted EBITDA was $24.9 million, up from $24.2 million reported a year ago.
Concorde: Revenues from the segment were $55 million during the reported period. New student starts came in at 3,892. Adjusted EBITDA for the segment totaled $3.99 million.
Fiscal 2023 Highlights
Universal Technical reported revenues of $607.4 million, which increased 45% year over year, backed by a $178.1 million contribution from the acquired Concorde business. The reported figure exceeded the company’s provided guidance of $602-605 million.
Earnings came in at 13 cents per share, down from 38 cents generated in fiscal 2022. Adjusted EBITDA in the fiscal year was $64.3 million compared with $60.2 million a year ago. Adjusted EBITDA came slightly ahead of the guided range of $62-$64 million.
New student starts increased to 22,613 from the prior-year level of 13,374.
Financial Highlights
At the end of fiscal 2023, the company had cash and cash equivalents of $151.5 million compared with $66.5 million on Sep 30, 2022.
Long-term debt is now $159.6 million, up from $66.4 million a year ago.
Net cash used in operations came in at $49.1 million in fiscal 2023 compared with $46 million recorded a year ago.
Adjusted free cash flow at fiscal 2023-end was $49.1 million versus $34.9 million at fiscal 2022-end.
Fiscal 2024 Outlook
Universal Technical expects new student starts in the 24,500-25,500 range, up 11% from fiscal 2023. Fiscal 2024 revenues are expected in the range of $705-$715 million, up 17% from the previous year.
Adjusted net income is projected in the range of $34-$38 million, reflecting growth of 193% year over year. It expects adjusted EBITDA in the range of $98-$102 million (up 56%) and adjusted free cash flow between $62 million and $66 million (up 30%).
Zacks Rank
UTI currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some Recent Consumer Discretionary Releases
Strategic Education, Inc. or SEI (STRA - Free Report) , reported impressive results for third-quarter 2023. Its quarterly earnings and revenues topped their respective Zacks Consensus Estimate and increased year over year.
Growth across its three segments, led by continued enrollment improvement in U.S. Higher Education, driven significantly by employer-affiliated enrollment, strong growth in Education Technology Services (earlier known as Alternative Learning) and improving performance in Australia/New Zealand, drove the result.
Adtalem Global Education Inc. (ATGE - Free Report) reported impressive results for first-quarter fiscal 2024. Earnings and revenues surpassed their respective Zacks Consensus Estimate and increased year over year, given solid enrollment growth and strategic initiatives.
The company's accelerated performance across five operational pillars highlights its market-leading scale and healthcare focus. ATGE also raised its fiscal 2024 guidance. With 80,000 students and 300,000 alumni, it is well-equipped to address critical healthcare provider shortages.
American Public Education, Inc. (APEI - Free Report) delivered strong earnings in third-quarter 2023. The bottom line handily surpassed the Zacks Consensus Estimate on the back of contributions from the American Public University System, Hondros College of Nursing segment and Graduate School.
Revenues also beat the analysts’ expectations and jumped year over year.