Universal Technical Institute (UTI) Misses Q4 EPS by 1c; Tot. Starts Slip
Universal Technical Institute (NYSE: UTI) reported Q4 EPS of $0.06, $0.01 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $95.3 million versus the consensus estimate of $95.1 million.
Student Metrics
Three Months Ended Sept. 30, | Twelve Months Ended Sept. 30, | ||||||
2014 | 2013 | 2014 | 2013 | ||||
(Rounded to hundreds) | |||||||
Total starts | 6,400 | 6,900 | 13,600 | 15,000 | |||
Average undergraduate full-time student enrollment | 13,900 | 14,600 | 14,400 | 15,000 | |||
End of period undergraduate full-time student enrollment | 15,500 | 16,300 | 15,500 | 16,300 | |||
2015 Outlook
For the full year ending September 30, 2015, we expect new student starts as well as our average student population to be down in the mid-single digits. While annual tuition increases will slightly offset the decline in average students, we expect revenue to decline approximately 3 to 4%. Despite lower revenue, with the efficiency improvements we have made, excluding the impact of pre-opening costs of our new campus, we expect to see year over year growth in operating income. During the second half of the year, we expect to see year over year growth in both new student applications and starts which should have a positive impact on 2016. Capital expenditures are expected to be approximately $24 million in 2015, of which approximately $13 million will be attributable to our new campus. Due to the seasonality of our business and normal fluctuations in student populations, we would expect volatility in our quarterly results.
For earnings history and earnings-related data on Universal Technical Institute (UTI) click here.