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Investing.com -- Universal Technical Institute, Inc. (NYSE:UTI) shares fell 3.5% despite the workforce solutions provider reporting fiscal third-quarter results that exceeded analyst expectations and raising the lower end of its full-year guidance.
The company reported adjusted earnings per share of $0.19 for the quarter ended June 30, 2025, surpassing the analyst estimate of $0.11. Revenue came in at $204.3 million, beating the consensus estimate of $200.01 million and representing a 15.1% increase from the same period last year. The company’s average full-time active students grew 12.7% YoY, while total new student starts increased 2.8%.
Despite the strong results, investors responded negatively, sending shares down 3.5% following the announcement. The company raised the lower end of its fiscal 2025 guidance, now expecting revenue between $830 million and $835 million, compared to the previous range of $825 million to $835 million. The updated guidance exceeds the analyst consensus of $829.4 million.
"We delivered another strong quarter, driven by consistent execution and the strength of our model," said Jerome Grant, CEO of Universal Technical Institute, Inc. "Revenue grew over 15% year-over-year, surpassing our expectation, with adjusted EBITDA increasing more than 37% and average full-time active students growing nearly 13%."
The company reported net income of $10.7 million, a 113.9% increase over the comparable period, while adjusted EBITDA rose 37.3% to $25.3 million. UTI’s segment revenue increased 12.2% to $131.5 million, while Concorde’s segment revenue grew 20.7% to $72.8 million.
A significant milestone for the company was the lifting of core growth restrictions on its Concorde Career Colleges division by the Department of Education, which will enable accelerated program and campus growth starting next fiscal year.
The company maintained its adjusted EBITDA guidance of $124 million to $128 million and adjusted free cash flow projection of $62 million to $68 million for fiscal 2025.
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