Universal Technical Institute, Inc. UTI reported impressive first-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. On a year-over-year basis, both top and bottom lines increased.
Find the latest earnings estimates and surprises on Zacks Earnings Calendar.
The company achieved strong growth in the first quarter of 2025, driven by its strategy focused on expansion, diversification and optimization. Both divisions saw year-over-year improvements in key financial and operational areas. Higher revenues, an increase in active students and strong new enrollments contributed to the bottom-line growth. Owing to strong performance, the company has raised its guidance for fiscal 2025 while remaining aligned with long-term growth objectives.
The company began the year with the launch of its North Star Phase II strategy, focusing on growth and innovation. Strategic investments, technological advancements and strong partnerships are expected to support brand expansion and higher enrollment. The company remains focused on delivering industry-leading student outcomes. UTI is well-positioned to strengthen performance and create long-term value for its shareholders.
Inside the Numbers of UTI
Adjusted earnings per share (EPS) of 40 cents topped the consensus mark of 18 cents by 122.2% and rose significantly from the year-ago quarter’s level of 17 cents.
Quarterly revenues of $201.4 million topped the consensus mark of $194.1 million by 3.8% and increased 15.3% from the prior-year quarter’s figure. This upside was mainly attributable to the growth in new student starts and average full-time active students at UTI and Concorde.
Universal Technical Institute Inc Price, Consensus and EPS Surprise
Universal Technical Institute Inc Price, Consensus and EPS Surprise
Universal Technical Institute Inc price-consensus-eps-surprise-chart | Universal Technical Institute Inc Quote
New student starts totaled 5,313, up 22.3% from 4,346 students reported a year ago. Average full-time active students increased 11.1% year over year to 25,062 students.
Adjusted EBITDA was $35.5 million, up 44.8% from $24.5 million reported a year ago. Adjusted EBITDA margins of 17.5% grew 350 basis points (bps) from a year ago.
UTI’s Segment Highlights
UTI: Revenues from the segment rose 14% to $131.5 million year over year. This upside was backed by the growth in average full-time active students. New student starts totaled 2,753, up 19% from the prior year. Average full-time active students increased 8% year over year.
Adjusted EBITDA was $31.9 million, up from $21.6 million reported a year ago. Adjusted EBITDA margins of 24.3% grew 560 bps from a year ago.
Concorde: Revenues from the segment were $70 million during the reported period, up 17.9% from a year ago. New student starts totaled 2,560, up 26% from a year ago. Average full-time active students increased 16.4% year over year.
Adjusted EBITDA in the segment totaled $13 million, up from $8.8 million reported a year ago. Adjusted EBITDA margins of 18.6% increased 380 bps from a year ago.
Financial Details of UTI
At the end of first-quarter fiscal 2025, the company had cash and cash equivalents of $172 million compared with $161.9 million at the fiscal 2024-end.
Long-term debt is now $117.3 million, down from $123 million at the end of fiscal 2024.
In the first quarter of fiscal 2025, cash provided by operating activities totaled $23 million compared with $10.8 million in the year-ago period.
Adjusted free cash flow in the fiscal first quarter was $18.9 million compared with $10.2 million a year ago.
UTI’s Fiscal 2025 Guidance Raised
Universal Technical now expects new student starts in the 28,500-29,500 band, up from 28,000-29,000 guided range earlier. This implies an increase from fiscal 2024 levels of 26,885.
Revenues are now anticipated to be in the range of $810-$820 million, up from the prior estimate of $800-$815 million. The expected figure indicates an increase from the previous year’s levels of $732.7 million.
Net income is estimated in the range of $54-$58 million, up from the prior estimate of $52-$56 million. The company reported net income of $42 million in the previous year.
The company now expects adjusted EBITDA in the range of $122-$126 million, up from the prior estimate of $120-$124 million. The estimated figure indicates a rise from $102.9 million in the year-ago period.
Universal Technical anticipates adjusted EPS in the range of 96 cents to $1.04, up from the prior estimate of 93 cents to $1.01. The estimated figure indicates a rise from 75 cents reported in the prior year.
Adjusted free cash flow is expected to be between $60 million and $65 million, up from the prior estimate of $58 million and $62 million. The company reported adjusted free cash flow of $73.5 million in the prior year.
UTI’s Zacks Rank
Universal Technical currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some Recent Consumer Discretionary Releases
Adtalem Global Education Inc. ATGE posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.
Adtalem's operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75 to $5.95.
Las Vegas Sands Corp. LVS reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. Both metrics declined on a year-over-year basis.
The company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute its strategic objectives and remains optimistic about achieving industry-leading growth in both Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings, enhanced service levels and increased tourism spending in Asia.
Royal Caribbean Cruises Ltd. RCL reported mixed fourth-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate while the revenues missed the same. Notably, both top and bottom lines increased on a year-over-year basis.
The company’s performance during the quarter was driven by stronger pricing on close-in demand and continued strength in onboard revenues. Its diversified fleet offerings, accompanied by commercial and vacation experiences, are witnessing robust demand trends amid an improving global market backdrop. Thanks to these tailwinds, RCL could achieve its Trifecta goals before the schedule, pointing out the benefits it is realizing from the current improving scenario.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
