Universal Technical Institute Beats on EPS But GAAP Results Lag
Universal Technical Institute (NYS: UTI) reported earnings on July 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q3), Universal Technical Institute met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank. GAAP earnings per share shrank significantly.
Gross margins increased, operating margins contracted, net margins dropped.
Universal Technical Institute recorded revenue of $91.0 million. The six analysts polled by S&P Capital IQ foresaw sales of $90.2 million on the same basis. GAAP reported sales were 8.7% lower than the prior-year quarter's $99.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.01. The six earnings estimates compiled by S&P Capital IQ predicted -$0.01 per share. GAAP EPS of $0.01 for Q3 were 75% lower than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 56.8%, 50 basis points better than the prior-year quarter. Operating margin was 0.5%, 100 basis points worse than the prior-year quarter. Net margin was 0.3%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $97.7 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $382.2 million. The average EPS estimate is $0.21.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 355 members out of 394 rating the stock outperform, and 39 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 118 give Universal Technical Institute a green thumbs-up, and eight 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 $9.75.
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The article Universal Technical Institute Beats on EPS But GAAP Results Lag originally appeared on Fool.com.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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month. The Motley Fool has no position in any of the stocks mentioned. 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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