Universal Technical Institute (NYSE:UTI) Posts Earnings Results, Beats Expectations By $0.02 EPS

Universal Technical Institute (NYSE:UTI) issued its quarterly earnings results on Wednesday. The company reported $0.04 EPS for the quarter, beating analysts’ consensus estimates of $0.02 by $0.02, FiscalAI reports. Universal Technical Institute had a net margin of 3.88% and a return on equity of 10.25%. The business had revenue of $218.91 million for the quarter, compared to analysts’ expectations of $220.40 million.

Here are the key takeaways from Universal Technical Institute’s conference call:

• Strong third-quarter growth: New student starts rose 11% year over year, average active students increased 6%, and revenue grew 7% to $218.9 million. UTI starts increased 23%, supported by continued demand for skilled-trades programs and new campus launches.
• Fiscal 2026 guidance was reduced due primarily to softer-than-expected fourth-quarter UTI high-school starts in auto and diesel, along with a faster mix shift toward shorter, slightly less profitable skilled-trades programs. Revenue is now expected at $893 million-$900 million and reported adjusted EBITDA at $100 million-$103 million.
• New campuses are outperforming launch plans: Atlanta starts are tracking 30% ahead of expectations and San Antonio starts approximately 40% ahead. Management said both campuses could reach scale faster and potentially exceed their projected mature run rates.
• Management maintained confidence in its fiscal 2029 targets of more than $1.2 billion in revenue and approximately $220 million of adjusted EBITDA, citing robust employer demand, capacity expansion, and continued growth in skilled trades and healthcare.
• UTI and Concorde are now operating under one enterprise model intended to simplify systems, improve student acquisition, and create longer-term efficiencies. Executives expect potential synergies but did not quantify their size or timing.

Universal Technical Institute Stock Performance

Shares of NYSE UTI traded up $1.73 during midday trading on Friday, reaching $29.60. 1,184,321 shares of the company traded hands, compared to its average volume of 943,012. The company has a market cap of $1.63 billion, a price-to-earnings ratio of 47.52, a PEG ratio of 3.72 and a beta of 1.25. Universal Technical Institute has a 52 week low of $21.29 and a 52 week high of $51.34. The stock has a 50-day moving average price of $41.63 and a 200 day moving average price of $37.03. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.17 and a quick ratio of 1.17.

Insider Activity

In related news, Director Linda J. Srere sold 15,000 shares of the company’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $36.59, for a total value of $548,850.00. Following the completion of the sale, the director directly owned 127,564 shares in the company, valued at approximately $4,667,566.76. This represents a 10.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Jerome Alan Grant sold 94,500 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $41.40, for a total value of $3,912,300.00. Following the completion of the transaction, the chief executive officer directly owned 335,715 shares in the company, valued at $13,898,601. The trade was a 21.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 3,117,545 shares of company stock worth $128,998,420. Corporate insiders own 9.80% of the company’s stock.

Institutional Investors Weigh In On Universal Technical Institute

Several large investors have recently modified their holdings of the stock. Newbridge Financial Services Group Inc. acquired a new stake in Universal Technical Institute during the 2nd quarter valued at $27,000. NewEdge Advisors LLC acquired a new stake in shares of Universal Technical Institute in the first quarter valued at $57,000. Inceptionr LLC acquired a new position in Universal Technical Institute during the 4th quarter worth about $216,000. MML Investors Services LLC increased its position in Universal Technical Institute by 13.6% in the 4th quarter. MML Investors Services LLC now owns 8,693 shares of the company’s stock valued at $227,000 after acquiring an additional 1,040 shares in the last quarter. Finally, Creative Planning bought a new position in shares of Universal Technical Institute in the third quarter worth about $254,000. 75.67% of the stock is currently owned by institutional investors.

Key Stories Impacting Universal Technical Institute

Here are the key news stories impacting Universal Technical Institute this week:

• Positive Sentiment: Fiscal third-quarter adjusted EPS was $0.04, exceeding the $0.02 consensus estimate. The company also said new student-start growth exceeded expectations, supported by strong demand and momentum at newer campuses. Universal Technical Institute Reports Fiscal Year 2026 Third Quarter Results
• Positive Sentiment: Management expects fiscal 2026 revenue of $893 million to $900 million and plans to add 20% more high-school admissions staff, signaling continued investment in enrollment growth. UTI anticipates fiscal 2026 revenue while adding admissions staff
• Positive Sentiment: Rosenblatt reaffirmed its “buy” rating with a $45 price target, while B. Riley maintained a “buy” rating and set a $48 target, indicating substantial upside in their models. Analyst rating reports
• Neutral Sentiment: Quarterly revenue was $218.91 million, slightly below the $220.40 million consensus estimate. The mixed results suggest earnings benefited from performance or cost factors even as topline growth fell modestly short. Universal Technical Institute Reports Mixed Q3 2026 Results
• Negative Sentiment: Northland Securities lowered its fiscal 2026 EPS forecast to $0.60 from $0.76 and reduced fiscal 2027 EPS expectations to $0.73 from $0.87. Estimates were also cut for the first, second and fourth quarters of fiscal 2027, pointing to weaker projected profitability. Universal Technical Institute analyst estimates
• Negative Sentiment: The fiscal 2026 revenue outlook is below the roughly $910.3 million analyst consensus, creating a near-term growth concern despite management’s confidence in longer-term targets.

Analyst Ratings Changes

UTI has been the subject of a number of research analyst reports. Barrington Research raised their target price on Universal Technical Institute from $36.00 to $42.00 and gave the company an “outperform” rating in a research note on Thursday, May 7th. Northland Securities set a $41.00 price target on shares of Universal Technical Institute in a report on Thursday, May 7th. Truist Financial cut their target price on Universal Technical Institute from $47.00 to $38.00 and set a “buy” rating on the stock in a research report on Thursday. Weiss Ratings upgraded shares of Universal Technical Institute from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, July 28th. Finally, Rosenblatt Securities reissued a “buy” rating and set a $45.00 target price on shares of Universal Technical Institute in a report on Thursday. Four analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $43.83.

About Universal Technical Institute

Universal Technical Institute, Inc (NYSE: UTI) is a leading provider of post-secondary education for students pursuing careers as professional automotive, diesel, collision repair, motorcycle and marine technicians, as well as in welding and CNC machining. The company designs and delivers hands-on training through a blend of classroom instruction and experiential lab work, preparing graduates for entry-level positions in the transportation, manufacturing and energy sectors. UTI’s curriculum emphasizes industry-recognized credentials and proprietary coursework developed in collaboration with original equipment manufacturers (OEMs) to ensure alignment with evolving employer needs.

Through a network of campus locations across the United States and select centers in Canada, Universal Technical Institute offers diploma and certificate programs ranging from 36 to 74 weeks in length.