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Universal Technical to Report Q1 Earnings: Here's What to Expect

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Universal Technical Institute, Inc. (UTI - Free Report) is slated to report its first-quarter fiscal 2025 (ended Dec. 31, 2024) results on Feb. 5, after market close.

Find the latest earnings estimates and surprises on Zacks Earnings Calendar.

In the last reported quarter, the company’s earnings and revenues topped the Zacks Consensus Estimate by 13.3% and 2.8%, respectively. On a year-over-year basis, the metrics increased 240% and 15.3%, respectively.

UTI’s earnings surpassed the consensus mark in three of the trailing four quarters and missed on the remaining occasion, with an average surprise of 54.6%.

Trend in Universal Technical’s Estimate Revision

The Zacks Consensus Estimate for fiscal first-quarter earnings per share (EPS) has moved south to 18 cents from 20 cents over the past 60 days. The estimated figure indicates 5.9% growth from the year-ago EPS of 17 cents.

The consensus mark for revenues is pegged at $194.1 million, indicating 11.1% year-over-year growth from $174.7 million.

Factors Likely to Define UTI’s Quarterly Results

Revenues

The top line of Universal Technical is expected to have risen year over year, attributable to growth in average full-time active students. This growth trend is likely to have reflected in both of its reportable segments, UTI and Concorde. Furthermore, the company’s intent focus on effectively executing its North Star strategy is likely to have bode well in regards to the increasing number of students and campuses.

Notably, the company’s investments in program expansions in both segments, accompanied by enhancements of curriculum and equipment, are likely to have supported its growth trend. For the fiscal first quarter, the company expects consolidated revenues to grow between high-single to low-double-digits from last year's quarter.

For the quarter, the Zacks Consensus Estimate for the revenues under the UTI and Concorde segments are expected to increase year over year to $125 million and $66 million from $115 million and $59 million, respectively.

The consensus mark for the company’s average full-time active students is pegged at 24,995, up from 22,565 reported in the year-ago quarter.

Margins

Universal Technical’s bottom line is expected to have gained year over year on the back of benefits realized from the implementation of the North Star strategy, along with continuous focus on workforce and facilities optimization. Also, leverage from the increased top line is likely to have added extra support during the quarter.

With the company entering Phase II of its North Star strategy in fiscal 2025, it aims to facilitate further growth and diversification in its portfolio and expand margins as the period proceeds.

What the Zacks Model Unveils for UTI

Our proven model does not conclusively predict an earnings beat for Universal Technical this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: UTI has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are some companies in the Zacks Consumer Discretionary sector, which, according to our model, have the right combination of elements to beat on earnings in their respective quarters to be reported.

Life Time Group Holdings, Inc. (LTH - Free Report) has an Earnings ESP of +14.29% and a Zacks Rank of 1 at present.

LTH is expected to register a 10.5% increase in earnings for the fourth quarter of 2024. It reported earnings beat in three of the trailing four quarters and missed on one occasion, with an average surprise of 46.2%.

Rush Street Interactive, Inc. (RSI - Free Report) currently has an Earnings ESP of +22.22% and a Zacks Rank of 1.

RSI’s earnings for the fourth quarter of 2024 are expected to increase 800%. It reported earnings beat in each of the trailing four quarters, the average surprise being 225%.

Trip.com Group Limited (TCOM - Free Report) currently has an Earnings ESP of +0.97% and a Zacks Rank of 1.

TCOM reported earnings beat in each of the trailing four quarters, with an average surprise of 42.8%. Its earnings for the fourth quarter of 2024 are expected to decrease 7.1%.

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