Yahoo Finance Universal Technical Institute, Inc. Just Recorded A 300% EPS Beat: Here's What Analysts Are Forecasting Next
Universal Technical Institute, Inc. (NYSE:UTI) just released its first-quarter report and things are looking bullish. The company beat forecasts, with revenue of US$175m, some 3.1% above estimates, and statutory earnings per share (EPS) coming in at US$0.17, 300% ahead of expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Universal Technical Institute
After the latest results, the five analysts covering Universal Technical Institute are now predicting revenues of US$715.8m in 2024. If met, this would reflect a meaningful 8.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 273% to US$0.70. Before this earnings report, the analysts had been forecasting revenues of US$708.8m and earnings per share (EPS) of US$0.63 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 16% to US$17.60. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Universal Technical Institute, with the most bullish analyst valuing it at US$18.00 and the most bearish at US$17.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Universal Technical Institute's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Universal Technical Institute's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Compare this to the 84 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it looks like Universal Technical Institute is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Universal Technical Institute following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Universal Technical Institute analysts - going out to 2025, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Universal Technical Institute you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
