Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Universal Technical Institute (UTI) , which belongs to the Zacks Schools industry.This school for auto, motorcycle and marine technicians has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 67.78%.For the last reported quarter, Univers ...

Core Insights - Patterson-UTI Energy, Inc. (PTEN) reported breakeven adjusted earnings per share for Q1 2025, outperforming the Zacks Consensus Estimate of a loss of 4 cents, driven by an 11.2% year-over-year reduction in costs and expenses, although the bottom line declined from 15 cents in the prior year [1] - Total revenues of $1.3 billion exceeded the Zacks Consensus Estimate by 7.7%, attributed to higher-than-expected revenues from Drilling Services and Completion Services, despite a 15.2% year-over-year decline [1] Segmental Performances - **Drilling Services**: Revenues totaled $412.9 million, down 9.8% from $457.6 million in the prior year, but beat the estimate of $405.7 million. Operating income was $76.3 million compared to $89.6 million in Q1 2024, exceeding the estimate of $63.2 million [3] - **Completion Services**: Revenues were $766.1 million, a decrease of 18.9% from $945 million in the previous year, yet surpassed the estimate of $690.7 million. Operating loss was $18.8 million compared to a profit of $49.6 million in Q1 2024, but was narrower than the estimated loss of $31.4 million [4] - **Drilling Products**: Revenues declined 4.8% to $85.7 million from $90 million in the prior year, missing the estimate of $86 million. Operating profit increased 3.5% to $6.7 million, beating the estimate of $4.3 million [5] - **Other Services**: Revenues were $15.9 million, down 10.6% from $17.8 million in the previous year, missing the estimate of $16.5 million. Operating income was $0.2 million compared to $1 million in Q1 2024, also missing the estimate of $0.5 million [6] Financial Position - PTEN spent $161.8 million on capital programs in the reported quarter, down from $226.9 million in the prior year. As of March 31, 2025, the company had cash and cash equivalents of $225.2 million and long-term debt of $1.2 billion, with a debt-to-capitalization ratio of 26% [7] - The company returned $51 million to shareholders in Q1 2025, including $20 million in share repurchases, with $741 million remaining under its share repurchase authorization [8] Q2 Outlook - **Drilling Services**: Rig activity is expected to remain steady, with a slight decline in adjusted gross profit anticipated due to lower average contracted revenues from older contracts and seasonal cost increases [10] - **Completion Services**: Activity is expected to stay stable, with a potential decline in adjusted gross profit depending on oil prices later in the quarter [11] - **Drilling Products**: Adjusted gross profit is expected to remain flat, with steady activity in the U.S. and a seasonal slowdown in Canada balanced by higher international revenues [11] - **Other Services**: A proportional decline in adjusted gross profit is expected due to the absorption and sale of parts of the Great Plains Oilfield Rental business [12]

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Core Insights - Universal Technical Institute, Inc. (UTI) is opening its first skilled trades campus in San Antonio as part of its North Star strategy to enhance workforce education in the U.S. [1][2] - The San Antonio campus is one of three planned for Fiscal 2026, pending regulatory approvals, and will focus on transportation, skilled trades, and energy education [2][6] - The new campus is expected to open in Spring 2026 and will offer programs in aviation, welding, HVACR, and electrical training [3][4] Company Strategy - UTI's North Star strategy emphasizes growth, diversification, and optimization, aiming for approximately 10% revenue CAGR and an Adjusted EBITDA margin of nearly 20% by fiscal 2029 [6] - The company reported strong financial results for Q1 of fiscal 2025, with improvements in revenue, Adjusted EBITDA, and new student starts, leading to increased guidance for the fiscal year [6] Community Impact - Local officials, including San Antonio's Mayor Ron Nirenberg, have expressed support for UTI's presence, highlighting its role in enhancing economic mobility for the community [5] - The San Antonio campus will occupy over 50,000 square feet and is strategically located to meet the growing demand for skilled workers in the area [4][5]

Core Viewpoint - Investors are seeking growth stocks that can deliver above-average growth and exceptional returns, but identifying such stocks is challenging due to their inherent risks and volatility [1] Company Summary - Universal Technical Institute (UTI) is highlighted as a promising growth stock, supported by a favorable Growth Score and a top Zacks Rank [2] - The company has a historical EPS growth rate of 43.1%, with projected EPS growth of 34% this year, surpassing the industry average of 23.8% [4] - UTI's year-over-year cash flow growth stands at 60.3%, significantly higher than the industry average of 3.2% [5] - The annualized cash flow growth rate over the past 3-5 years is 63.3%, compared to the industry average of 7.4% [6] - There have been upward revisions in current-year earnings estimates for UTI, with the Zacks Consensus Estimate increasing by 0.5% over the past month [8] - UTI has achieved a Growth Score of A and a Zacks Rank of 2 due to positive earnings estimate revisions, positioning it well for potential outperformance [9][10]

Core Viewpoint - Patterson-UTI Energy, Inc. (PTEN) is expected to report a first-quarter earnings loss of 4 cents per share and revenues of $1.19 billion, reflecting a challenging market environment and operational performance issues [1][8]. Group 1: Recent Performance - In the last reported quarter, PTEN's earnings missed the consensus estimate by 2 cents, reporting an adjusted net loss of 12 cents per share, which was wider than the expected 10-cent loss [2]. - Revenues for the last quarter were $1.2 billion, missing the Zacks Consensus Estimate by 4.2% [2]. - PTEN has beaten the Zacks Consensus Estimate in one of the last four quarters, with an average negative surprise of 37.27% [3]. Group 2: Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2025 earnings indicates a 126.67% year-over-year decline, while revenues are expected to decrease by 21.25% from the previous year [3]. - The estimated operating costs for the first quarter are projected to be $1,207.5 million, down 15.2% from the same period last year [5]. Group 3: Cost Management and Strategy - PTEN's direct operating costs are expected to decrease from $1,077.1 million to $897.6 million, and depreciation, depletion, amortization, and impairment costs are anticipated to drop from $275 million to $234.7 million [6]. - The company's strategy to integrate its Drilling and Completions businesses is expected to create a sustainable competitive advantage, with advancements in natural gas-powered completion equipment enhancing its market position [7]. Group 4: Revenue Challenges - Revenues are anticipated to decline due to poor performance across several segments, including Completion Services and Drilling Services [8][9]. - Despite expected revenue declines, PTEN's cost management efforts are crucial in minimizing the financial impact in the upcoming quarter [9]. Group 5: Earnings Prediction - The model predicts an earnings beat for PTEN, supported by a positive Earnings ESP of +25.00% and a Zacks Rank of 3 [11].

Core Insights - Zacks Premium offers various tools to help investors make informed decisions and enhance their confidence in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, aiding investors in selecting stocks likely to outperform the market in the next 30 days [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [3] Growth Score - The Growth Style Score assesses a company's financial health and future outlook based on projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score identifies optimal times to invest based on price trends and earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for investors seeking attractive value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to simplify portfolio building [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] Stock Selection Strategy - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal success [10] - Stocks with lower ranks, even if they have high Style Scores, may still face declining earnings forecasts, increasing the risk of price drops [11] Company Spotlight: Universal Technical Institute (UTI) - Universal Technical Institute is a leading provider of post-secondary education in the U.S., offering various programs in automotive and related fields [12] - UTI holds a Zacks Rank of 3 (Hold) with a VGM Score of A and a Momentum Style Score of B, indicating potential for growth [12][13] - Recent upward revisions in earnings estimates and a strong earnings surprise average of 39.4% make UTI a noteworthy consideration for investors [13]

Core Insights - Universal Technical Institute, Inc. has appointed Bruce Schuman as Chief Financial Officer, effective immediately, bringing extensive financial leadership experience to the role [1][2][3] - The company is poised for significant growth and profitability over the next four years, driven by the demand for skilled workers in the U.S. [2][4] - The second phase of the company's North Star strategy aims for approximately 10% revenue CAGR and an expansion of Adjusted EBITDA margin to nearly 20% by fiscal 2029 [4] Company Overview - Universal Technical Institute, Inc. is a leading workforce education provider specializing in transportation, skilled trades, and healthcare education [6] - The company operates two divisions: UTI, which offers technical training programs across 15 campuses in nine states, and Concorde Career Colleges, which has 17 campuses in eight states and online programs [6] Recent Performance - The company reported strong financial results for the first quarter of fiscal 2025, with improvements in revenue, Adjusted EBITDA, and new student starts year-over-year [5] - Universal Technical Institute has increased its guidance ranges for the fiscal year, indicating positive momentum in its operations [5]

Core Viewpoint - Patterson-UTI is an oil and gas services company that specializes in drilling and completing oil and natural gas wells, also providing specialized drilling components [1] Group 1: Company Overview - Patterson-UTI operates in the oil and gas services sector, focusing on drilling and completion of wells [1] - The company offers specialized drilling components, including drill heads and downhole tools through its Ulterra division [1] Group 2: Analyst Background - The author of the article is a Licensed Professional Engineer with expertise in the Nuclear Power industry, utilizing knowledge of the power and energy sectors for equity evaluation [1] - The author invests in income-producing equities and rental real estate for cash flow and long-term appreciation [1]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Universal Technical Institute (UTI) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][11]. Earnings Growth - UTI has a historical EPS growth rate of 39%, with projected EPS growth of 32% for the current year, surpassing the industry average of 24.2% [5]. Cash Flow Growth - UTI's year-over-year cash flow growth stands at 60.3%, significantly higher than the industry average of -15.4%. The company's annualized cash flow growth rate over the past 3-5 years is 63.3%, compared to the industry average of 7.5% [6][7]. Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for UTI, with the Zacks Consensus Estimate increasing by 2.8% over the past month [9]. Overall Assessment - UTI has achieved a Zacks Rank of 1 (Strong Buy) and a Growth Score of A, indicating its potential as an outperformer and a solid choice for growth investors [11].