Universal Technical Institute beats Q1 revenue estimates, reiterates 2026 guidance

Overview

• Education provider's fiscal Q1 revenue rose 9.6%, beating analyst expectations

• Net income fell due to strategic growth expenses

• Company announced plans for new campus locations

Outlook

• Company expects fiscal 2026 revenue between $905 mln and $915 mln

• Universal Technical Institute anticipates fiscal 2026 reported adjusted EBITDA of $114 mln to $119 mln

• Company projects total new student starts between 31,500 and 33,000 for fiscal 2026

Result Drivers

• STUDENT ENROLLMENT - Average full-time active students increased by 7.2%, contributing to revenue growth

• STRATEGIC GROWTH EXPENSES - Net income decreased due to $7.6 mln in strategic growth expenses

• CAMPUS EXPANSION - Announced four new planned campus locations, pending regulatory approvals

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the professional & business education peer group is "buy"

• Wall Street's median 12-month price target for Universal Technical Institute Inc is $38.00, about 33.3% above its February 3 closing price of $28.51

• The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nPn7Bck7Fa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.