Universal Technical Institute, Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

As you might know, Universal Technical Institute, Inc. (NYSE:UTI) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 4.0% to hit US$201m. Universal Technical Institute also reported a statutory profit of US$0.40, which was an impressive 120% above what the analysts had forecast. 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.

View our latest analysis for Universal Technical Institute

Taking into account the latest results, the current consensus from Universal Technical Institute's five analysts is for revenues of US$814.1m in 2025. This would reflect a modest 7.2% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$1.00, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$806.4m and earnings per share (EPS) of US$0.97 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 22% to US$33.60, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Universal Technical Institute at US$36.00 per share, while the most bearish prices it at US$31.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 2025 expected to display 9.7% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10.0% annually. So it's pretty clear that, while Universal Technical Institute's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Universal Technical Institute's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 in mind, we wouldn't be too quick to come to a conclusion on Universal Technical Institute. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Universal Technical Institute analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Universal Technical Institute Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.