Universal Technical Institute, Inc.
) is set to report first quarter fiscal 2013 results on Jan 31.
Last quarter, the company posted a negative earnings surprise of
15.4%. Let's see how things are shaping up for this
Why the Negative Surprises?
United Technical has missed the Zacks Consensus Estimate in 3
of the last 4 quarters. Estimates have mostly seen a downward
trend. In-fact over the last 90 days, the Zacks Consensus
Estimate plummeted by 50% for fiscal 2013 and 49% for fiscal
2013, following a dismal performance in the fourth quarter of
Enrollments at this mechanic training institute have been
trending down consistently since the last few quarters as a
result of macroeconomic headwinds and continued challenges in
obtaining student financing. This is hampering the company's
revenue, margins and cash flows significantly.
No Improvement Expected in the First Quarter
The Zacks Consensus Estimate for the first quarter stands at 8
cents, reflecting a year-over-year decline of 49.1%. The Zacks
Consensus Estimate for the first quarter has gone down by almost
39% over the last 90 days, as new student starts are expected to
decline yet again in this quarter.
The downward pressure on estimates signals that the first
quarter might not be too different from the past few quarters.
Moreover, the stock carries a Zacks Rank #4 (Sell).
Universal Technical works closely with leading original
equipment manufacturers (OEM) in the automotive, diesel,
motorcycle and marine industries such as,
Ford Motor Co.
Honda Motor Co., Ltd.
Harley Davidson, Inc.
) and many more.
FORD MOTOR CO (F): Free Stock Analysis Report
HONDA MOTOR (HMC): Free Stock Analysis Report
HARLEY-DAVIDSON (HOG): Free Stock Analysis
UNIVL TECH INST (UTI): Free Stock Analysis
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