Universal Technical Institute, Inc. Just Beat EPS By 73%: Here's What Analysts Think Will Happen Next

Universal Technical Institute, Inc. (NYSE:UTI) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$207m, some 5.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.21, 73% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Universal Technical Institute after the latest results.

We've discovered 1 warning sign about Universal Technical Institute. View them for free.

Taking into account the latest results, the current consensus from Universal Technical Institute's six analysts is for revenues of US$829.4m in 2025. This would reflect a credible 6.0% increase on its revenue over the past 12 months. Statutory per share are forecast to be US$1.04, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$814.1m and earnings per share (EPS) of US$1.00 in 2025. So the consensus seems to have become somewhat more optimistic on Universal Technical Institute's earnings potential following these results.

Check out our latest analysis for Universal Technical Institute

The consensus price target rose 8.5% to US$36.00, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. Currently, the most bullish analyst values Universal Technical Institute at US$37.00 per share, while the most bearish prices it at US$35.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Universal Technical Institute is an easy business to forecast or the the analysts are all using similar assumptions.

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. We would highlight that Universal Technical Institute's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 22% p.a. growth over the last five years. Compare this to the 92 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for Universal Technical Institute going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Universal Technical Institute that you should be aware of.

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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.