Universal Technical Institute (NYSE:UTI) Beats Q3 Earnings Estimates but Stock Drops in After-Hours Trading

Universal Technical Institute Inc (NYSE:UTI) reported its fiscal third-quarter 2025 results, delivering revenue and earnings per share (EPS) that exceeded analyst expectations. However, the stock faced a sharp decline in after-hours trading, suggesting a more nuanced market reaction to the report.

Key Financial Highlights vs. Estimates

• Revenue: The company posted $204.3 million in revenue for Q3 2025, surpassing the consensus estimate of $202.0 million.
• EPS: Reported EPS came in at $0.19, significantly higher than the estimated $0.11.
• Full-Year Outlook: The company raised the lower end of its fiscal 2025 guidance for revenue and new student starts, signaling increased confidence in its long-term growth strategy.

Market Reaction

Despite beating expectations, UTI shares fell 6.3% in after-hours trading. This suggests that investors may have been anticipating even stronger results or are concerned about broader operational challenges not immediately evident in the headline numbers. Over the past month, the stock had gained 5.1%, possibly reflecting optimism ahead of earnings—making the post-earnings dip a classic "sell the news" reaction.

Press Release Takeaways

• Segmental Performance: The company operates through two primary segments—Universal Technical Institute (UTI) and Concorde Career Colleges (Concorde). Both divisions contributed to the revenue beat.
• Guidance Adjustment: Management raised the lower end of its full-year revenue and student enrollment guidance, indicating improved operational execution.
• Long-Term Strategy: The earnings release emphasized confidence in the company’s workforce education programs, particularly in transportation, skilled trades, and healthcare.

Looking Ahead

Analysts currently estimate Q4 2025 revenue at $222.8 million and full-year sales at $837.7 million. The company’s upward revision to its own guidance suggests that these estimates may see adjustments in the coming weeks.

For a deeper dive into UTI’s earnings and future estimates, visit the earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.