Universal Technical Institute, Inc. (UTI - Free Report) , a leading provider of transportation technician training in the U.S., recently announced a three-year agreement with Bass Pro Shops. Under the agreement, Bass Pro Shops will supply boats and accessory equipment for the marine technician training program at Universal Technical's Marine Mechanics Institute (“MMI”) campus in Orlando, FL.
Bass Pro Shops will supply seven fully-loaded boats and related equipments for training. Also, it will help enhance the curricula of the Capstone and Rigging courses under the Marine Technician Specialist program. This will allow the institute to train students on the latest models of fiberglass and aluminium boats as well as give them employment opportunities at 97 Bass Pro Shops Power Pro Service Centers across North America.
Management of UTI believes that adding Bass Pro Shops to its team of marine engine manufacturer partners will give its students the opportunity to train on state-of-the-industry equipment, thus enhancing their skills to deliver value to employers the moment they start working.
Universal Technical has been reporting weak top-line and enrollment levels for the past few quarters, owing to sluggish demand due to an improving employment market and reluctance in taking loans. Continued challenges in obtaining student financing and increased competition are also adversely affecting enrollment rates. Meanwhile, private education companies like DeVry Education Group Inc. (DV - Free Report) are also struggling to attain decent enrollment levels.
In the last reported quarter, it posted an adjusted loss of 20 cents per share. Moreover, revenues fell 3.3% from the prior-year quarter owing to lower enrollments. The company is undertaking several initiatives to drive its top line, including the launch of new programs, campuses and improved marketing campaigns.
Universal Technical currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks in this industry include Lincoln Educational Services Corporation (LINC - Free Report) and Capella Education Co. (CPLA - Free Report) .
Lincoln Educational Services expects fiscal 2016 earnings to increase 88%. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Capella Education – a Zanks Rank #2 (Buy) company – projects full-year 2016 earnings growth of 3.44%.
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