Q3 Earnings Highs And Lows: Universal Technical Institute (NYSE:UTI) Vs The Rest Of The Education Services Stocks
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Universal Technical Institute (NYSE:UTI) and the best and worst performers in the education services industry.
A whole industry has emerged to address the problem of rising education costs, offering consumers alternatives to traditional education paths such as four-year colleges. These alternative paths, which may include online courses or flexible schedules, make education more accessible to those with work or child-rearing obligations. However, some have run into issues around the value of the degrees and certifications they provide and whether customers are getting a good deal. Those who don’t prove their value could struggle to retain students, or even worse, invite the heavy hand of regulation.
The 8 education services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 4% on average since the latest earnings results.
Universal Technical Institute (NYSE:UTI)
Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.
Universal Technical Institute reported revenues of $196.4 million, up 15.3% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and a decent beat of analysts’ new students estimates.
"We concluded the first stage of our North Star Strategy in fiscal 2024 achieving both strong results and momentum," said Jerome Grant, CEO of Universal Technical Institute, Inc.
Universal Technical Institute Total Revenue
Universal Technical Institute scored the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 24.6% since reporting and currently trades at $24.81.
Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ:STRA) is a career-focused higher education provider.
Strategic Education reported revenues of $306 million, up 7% year on year, outperforming analysts’ expectations by 1.5%. The business had an exceptional quarter with an impressive beat of analysts’ EPS and adjusted operating income estimates.
Strategic Education Total Revenue
The market seems content with the results as the stock is up 1.7% since reporting. It currently trades at $97.99.
Founded in 1986, Bright Horizons (NYSE:BFAM) is a global provider of child care, early education, and workforce support solutions.
Bright Horizons reported revenues of $719.1 million, up 11.4% year on year, exceeding analysts’ expectations by 0.8%. Still, it was an ok quarter as it posted full-year revenue guidance in line with analysts’ expectations.
Bright Horizons delivered the weakest full-year guidance update in the group. As expected, the stock is down 20.9% since the results and currently trades at $105.03.
Established in 1946, Lincoln Educational (NASDAQ:LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.
Lincoln Educational reported revenues of $114.4 million, up 14.8% year on year. This print topped analysts’ expectations by 3.3%. It was a strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates and full-year EBITDA guidance topping analysts’ expectations.
The stock is down 5.6% since reporting and currently trades at $15.31.
Formerly known as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) is a global provider of workforce solutions and educational services.
Adtalem reported revenues of $417.4 million, up 13.2% year on year. This result surpassed analysts’ expectations by 5%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.
Adtalem pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 11.3% since reporting and currently trades at $83.44.
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