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Universal Technical Institute, Inc.’s UTI stock gained 11.4% in yesterday’s after-hours trading session as it reported impressive second-quarter fiscal 2025 results. Both earnings and revenues surpassed the Zacks Consensus Estimate and increased on a year-over-year basis.
The company achieved strong growth in the fiscal second quarter, driven by its strategy, focused on expansion, diversification and optimization. Both divisions saw year-over-year improvements in key financial and operational areas. Higher revenues, an increase in active students and strong new enrollments contributed to the bottom-line growth.
Owing to strong performance, the company has raised its guidance for fiscal 2025 while remaining aligned with long-term growth objectives.
UTI continued to advance Phase II of its North Star strategy during the quarter. The company announced nine new programs for 2025 and plans to open three campuses in 2026, keeping it ahead of growth plans. UTI is focusing on near-term operational execution while making long-term investments aimed at supporting growth and improving profitability. Favorable trends and new partnerships are also expected to support its strategic goals.
Adjusted earnings per share (EPS) of 21 cents topped the consensus mark of 12 cents by 75% and rose significantly from the year-ago quarter’s level of 14 cents. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Quarterly revenues of $207.4 million topped the consensus mark of $197 million by 3.8% and increased 12.6% from the prior-year quarter’s figure. This upside was mainly attributable to the growth in new student starts and average full-time active students at UTI and Concorde.
Universal Technical Institute Inc price-consensus-eps-surprise-chart | Universal Technical Institute Inc Quote
New student starts totaled 6,650, up 21.4% from 5,480 students reported a year ago. Average full-time active students increased 10.3% year over year to 24,604.
Adjusted EBITDA was $28.9 million, up 27.8% from $22.6 million reported a year ago. Adjusted EBITDA margins of 13.9% grew 160 basis points (bps) from a year ago.
UTI: Revenues from the segment rose 8.8% to $134.2 million year over year. This upside was backed by the growth in average full-time active students. New student starts totaled 3,591, up 26.4% from the prior year. Average full-time active students increased 7% year over year.
Adjusted EBITDA was $28 million, up from $24.4 million reported a year ago. Adjusted EBITDA margins of 20.8% grew 110 bps from a year ago.
Concorde: Revenues from the segment were $73.2 million during the reported period, up 20.3% from a year ago. The growth was supported by higher marketing efforts, which helped improve lead conversion and enrollment. New student starts totaled 2,840, up 19.6% from a year ago. Average full-time active students increased 10.3% year over year.
Adjusted EBITDA in the segment totaled $10.9 million, up from $5.4 million reported a year ago. Adjusted EBITDA margins of 14.9% increased 600 bps from a year ago.
At the end of second-quarter fiscal 2025, the company had cash and cash equivalents of $96 million compared with $161.9 million at fiscal 2024-end.
Long-term debt was now $91.6 million, down from $123 million at the end of fiscal 2024.
In the first six months of fiscal 2025, cash provided by operating activities totaled $22.2 million compared with $8.3 million in the year-ago period.
Adjusted free cash flow in the first half was $8 million compared with $3.7 million a year ago.
Universal Technical now expects new student starts in the 29,000-30,000 band, up from 28,500-29,500 guided earlier. This implies an increase from fiscal 2024 levels of 26,885.
Revenues are now anticipated to be in the range of $825-$835 million, up from the prior estimate of $810-$820 million. The expected figure indicates an increase from the previous year’s levels of $732.7 million.
Net income is estimated in the range of $56-$60 million, up from the prior estimate of $54-$58 million. UTI reported net income of $42 million in the previous year.
The company now expects adjusted EBITDA in the range of $124-$128 million, up from the prior estimate of $122-$126 million. The estimated figure indicates a rise from $102.9 million in the year-ago period.
Universal Technical anticipates adjusted EPS in the range of $1 to $1.08, up from the prior estimate of 96 cents to $1.04. The estimated figure indicates a rise from 75 cents per share reported in the prior-year.
Adjusted free cash flow is expected to be between $62 million and $68 million, up from the prior estimate of $60 million to $65 million. The company reported adjusted free cash flow of $73.5 million in the prior-year.
Universal Technical currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Norwegian Cruise Line Holdings Ltd. NCLH reported first-quarter 2025 results, with earnings and revenues missing the respective Zacks Consensus Estimate. Both top and bottom lines decreased on a year-over-year basis.
Results in the quarter were hurt by a 2% decline in Capacity Days, stemming from a higher number of Berths out of service due to larger ships undergoing dry-dock, as well as a strategic move to reduce passenger air participation rates. For 2025, Norwegian Cruise anticipates occupancy to be approximately 102.5% compared with the prior guidance of 103.4% and Capacity Days to be about 24.545 million.
MGM Resorts International MGM reported first-quarter 2025 results, with earnings and revenues beating the respective Zacks Consensus Estimate. Both top and bottom lines declined from the prior-year quarter’s level.
Management remains optimistic about the outlook for the rest of 2025, supported by strong forward bookings and expectations for record hotel performance in April on the Las Vegas Strip. MGM Resorts stated progress on the $200 million EBITDA enhancement plan and expects more than $150 million to be realized in 2025.
Caesars Entertainment, Inc. CZR reported mixed first-quarter 2025 results, with earnings missing the Zacks Consensus Estimate and revenues surpassing the same. Nonetheless, both top and bottom lines improved on a year-over-year basis.
Caesars Entertainment’s first-quarter performance was driven by record results in the Digital segment. Growth in the regional segment, supported by recently opened properties, and solid performance in Las Vegas, despite a tough comparison to last year’s Super Bowl period, also aided the quarter’s performance.
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This article originally published on Zacks Investment Research (zacks.com).
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