Why Universal Technical Institute Stock Zoomed 10% Higher Today
Universal Technical Institute (UTI) experienced a 10% increase in its stock price on Monday without any news of its own. This surge was triggered by a rival company's earnings report. Lincoln Educational Services (LINC) announced impressive third-quarter results, with revenue growth of nearly 13% year over year, reaching $159 million.
The company's net profit also surged by 24% to $4.7 million. Furthermore, LINC provided optimistic full-year revenue guidance of $600 million to $605 million, surpassing the average analyst estimate of $594 million. The U.S. faces a deficit of skilled workers in the vocational trades, which both Lincoln and UTI cater to. Lincoln's strong fundamentals in this area are likely to benefit UTI as well.
UTI's next earnings release is scheduled for November 18. Analysts predict a 5% rise in quarterly revenue to $235 million and a 57% increase in earnings per share to $0.36. Given the current positive momentum of Lincoln's stock, this estimate may be conservative. With the steady demand for vocational specialists in the country, UTI's stock is worth monitoring closely.
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