Universal Technical Institute (UTI) Misses Q1 EPS by 25c, Revenues Beat
Universal Technical Institute (NYSE: UTI) reported Q1 EPS of ($0.36), $0.25 worse than the analyst estimate of ($0.11). Revenue for the quarter came in at $83.1 million versus the consensus estimate of $81.3 million.
Kim McWaters, UTI's President and Chief Executive Officer, stated, "Our first quarter fiscal 2019 start growth of 14.8% reflects the continued execution of our growth initiatives and transformation plan. We believe we have hit an inflection point and are now clearly achieving traction as demonstrated by start growth in our core business, at our new campus and with our new welding program. In particular, we are pleased that our transformation plan is beginning to positively impact the adult student segment as evidenced by 8.5% start growth in a robust economy. Given the historically high correlation between student start growth and unemployment, if unemployment were to rise, we believe we would see an acceleration in our start growth.
"Given the significant investments made in a number of accretive initiatives during 2018, this year we are laser focused on driving cash flow growth through new student starts, cost efficiencies and foot-print rationalization. Our newest metro campus, Bloomfield, NJ, is performing very well against plan with strong demand from prospective students. Overall, we remain on track to grow our total new student starts by mid-to-high single digits for the full year and exit the year with a higher average student population than at the beginning of the year."
For earnings history and earnings-related data on Universal Technical Institute (UTI) click here.