Universal Technical Institute, Inc. (UTI) is gearing up to unveil its fourth-quarter fiscal 2023 results on November 15, after the close of the market. In the previous quarter, the company outperformed the Zacks Consensus Estimate both in terms of revenue and earnings, with a 51.8% year-over-year increase in revenues. Despite this, it reported a loss of 1 penny per share in the year-ago quarter.
Estimate Revision Trends
The Zacks Consensus Estimate for UTI’s fiscal fourth-quarter earnings has remained steady at 12 cents per share over the past 60 days. However, this estimate reflects a 33.3% decline from the year-ago quarter’s figure of 18 cents per share.
Insightful Data: Universal Technical Institute Inc Price and EPS Surprise
The consensus estimate for UTI’s Q4 revenues is $166.5 million, indicative of a 50.5% year-over-year growth.
Critical Factors to Consider
Universal Technical’s Q4 revenues are projected to have surged on a year-over-year basis, primarily attributable to the acquisition of the Concorde. The company expects a seasonally higher start quarter for the Concorde, particularly in terms of larger clinical starts in July and September. Additionally, it predicts around 3,500 new student starts for Concorde, signaling significant growth compared to previous quarters. Despite these positive indicators, margins may have been affected due to escalating costs and expenses.
Quantitative Model Prediction
Based on our quantitative model, we cannot definitively assert an earnings beat for UTI this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) usually augurs well for an earnings beat. However, with UTI’s Earnings ESP at 0.00% and a Zacks Rank #3, this doesn’t seem to be the case.
Comparative Analysis with Recent Consumer Discretionary Releases
Other companies in the consumer discretionary sector have also posted commendable results recently. Strategic Education Inc. (STRA) and Adtalem Global Education Inc. (ATGE) both exceeded expectations in their respective quarters, showcasing positive growth trends. Similarly, American Public Education, Inc. (APEI) reported strong earnings and revenue growth, painting a favorable picture for the sector.
It’s vital to stay informed about these market developments to make well-rounded investment decisions.
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Please note that the views and opinions expressed in this article are those of the author and do not necessarily reflect those of Nasdaq, Inc.
