Higher revenue drives Universal Technical profit to top analyst estimates, shares jump

Revenue gains drive Universal Technical profit

PHOENIX — Auto mechanic training company Universal Technical Institute Inc. said Tuesday that an influx of students seeking more training in the weak economy drove fiscal first-quarter revenue up 15 percent and lifted profit above expectations.

The company said it it achieved record average student enrollment of 18,782 and its highest quarterly profit since 2006.

Universal Technical earned $9.3 million, or 38 cents per share, compared with $2.3 million, or 9 cents per share, a year ago. Revenue rose to $103.5 million from $90.1 million a year earlier helped by higher full-time student enrollment and fewer tuition discounts.

Analysts surveyed by Thomson Reuters expected the company to earn just 26 cents per share on revenue of $103.4 million.

The shares rose $1.24, or 7 percent, to close at $19.16 in afternoon trading.