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Universal Technical's (UTI) Q2 Loss Wider Than Expected
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Universal Technical Institute, Inc. (UTI - Free Report) reported adjusted loss of 40 cents per share in the second quarter of fiscal 2018, wider than the Zacks Consensus Estimate of a loss of 19 cents. The loss figure was also wider than the year-ago quarter’s loss of 12 cents.
Revenues & Enrollment
Revenues of $80.7 million in the second quarter fell 2.2% from $82.5 million in the prior-year quarter. The decline was caused by a 4.4% drop in average student enrollment.
Total starts fell 2.7% year over year during the quarter.
Operating Highlights
The company reported operating loss of $8.8 million against an operating income of $0.7 million in the prior-year quarter.
Operating expenses rose 9.4% to $89.5 million. The increase was primarily a result of planned increases in compensation costs.
Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) were $4 million compared with $5.6 million in the prior-year quarter.
Universal Technical Institute Inc Price, Consensus and EPS Surprise
The company had cash and cash equivalents of $82.2 million as of Mar 31, 2018, 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 range of $310-$320 million for the year.
Operating expenses are projected in the range of $348-$353 million.
Universal Technical expects to incur operating loss between $28 million and $33 million as well as projects a 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 along with 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.
Capella Education reported adjusted earnings of $1.20 per share in the first quarter of 2018, which surpassed the Zacks Consensus Estimate of $1.16 by 3.5%. In the year-ago quarter, earnings were 94 cents. Capella’s quarterly revenues of $112 million missed the Zacks Consensus Estimate of $113 million and inched up 0.2% year over year.
Strayer Education Inc. (STRA - Free Report) reported first-quarter 2018 adjusted earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.11 by 10.8%. However, earnings improved 29.5% year over year. Revenues improved 1.4% from the prior-year quarter to $116.5 million, owing to higher winter term enrollment.
Upcoming Peer Release
American Public Education, Inc. (APEI - Free Report) is scheduled to release quarterly earnings on May 8, after the market closes.
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Universal Technical's (UTI) Q2 Loss Wider Than Expected
Universal Technical Institute, Inc. (UTI - Free Report) reported adjusted loss of 40 cents per share in the second quarter of fiscal 2018, wider than the Zacks Consensus Estimate of a loss of 19 cents. The loss figure was also wider than the year-ago quarter’s loss of 12 cents.
Revenues & Enrollment
Revenues of $80.7 million in the second quarter fell 2.2% from $82.5 million in the prior-year quarter. The decline was caused by a 4.4% drop in average student enrollment.
Total starts fell 2.7% year over year during the quarter.
Operating Highlights
The company reported operating loss of $8.8 million against an operating income of $0.7 million in the prior-year quarter.
Operating expenses rose 9.4% to $89.5 million. The increase was primarily a result of planned increases in compensation costs.
Earnings (loss) before interest, taxes, depreciation and amortization (EBITDA) were $4 million compared with $5.6 million in the prior-year quarter.
Universal Technical Institute Inc Price, Consensus and EPS Surprise
Universal Technical Institute Inc Price, Consensus and EPS Surprise | Universal Technical Institute Inc Quote
Financials
The company had cash and cash equivalents of $82.2 million as of Mar 31, 2018, 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 range of $310-$320 million for the year.
Operating expenses are projected in the range of $348-$353 million.
Universal Technical expects to incur operating loss between $28 million and $33 million as well as projects a 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 along with 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.
Zacks Rank & 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.
Capella Education reported adjusted earnings of $1.20 per share in the first quarter of 2018, which surpassed the Zacks Consensus Estimate of $1.16 by 3.5%. In the year-ago quarter, earnings were 94 cents. Capella’s quarterly revenues of $112 million missed the Zacks Consensus Estimate of $113 million and inched up 0.2% year over year.
Strayer Education Inc. (STRA - Free Report) reported first-quarter 2018 adjusted earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.11 by 10.8%. However, earnings improved 29.5% year over year. Revenues improved 1.4% from the prior-year quarter to $116.5 million, owing to higher winter term enrollment.
Upcoming Peer Release
American Public Education, Inc. (APEI - Free Report) is scheduled to release quarterly earnings on May 8, after the market closes.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>