Universal Technical Institute Meets on Revenue, Misses on EPS

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Universal Technical Institute (NYS: UTI) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Universal Technical Institute met expectations on revenue and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
Universal Technical Institute logged revenue of $106.4 million. The eight analysts polled by S&P Capital IQ looked for revenue of $105.4 million. Sales were 9.4% lower than the prior-year quarter's $117.4 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
EPS came in at $0.16. The seven earnings estimates compiled by S&P Capital IQ anticipated $0.26 per share. GAAP EPS of $0.16 for Q1 were 62% lower than the prior-year quarter's $0.42 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.4%, 280 basis points worse than the prior-year quarter. Operating margin was 6.2%, 810 basis points worse than the prior-year quarter. Net margin was 3.8%, 490 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $102.3 million. On the bottom line, the average EPS estimate is $0.17.

Next year's average estimate for revenue is $412.0 million. The average EPS estimate is $0.81.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 364 members out of 409 rating the stock outperform, and 45 members rating it underperform. Among 156 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 144 give Universal Technical Institute a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Universal Technical Institute is hold, with an average price target of $13.67.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Universal Technical Institute. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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