Capitalizing on the solid prospect of heating, air conditioning, and refrigeration (HVACR) industry, Universal Technical Institute, Inc.'s UTI namesake division initiates a nine-month HVACR technician programs at Avondale, AZ, and Long Beach, CA, campuses.
The U.S. Bureau of Labor Statistics projected 6% growth in employment for HVACR mechanics and installers from 2022 to 2032. This growth reflects the increasing demand for technicians supporting air quality and temperature control systems in various settings. The company highlights the necessity for trained HVACR technicians, particularly due to diverse temperature fluctuations across the country impacting homes and businesses. Leveraging its current campus footprint, UTI aims to rapidly expand training programs to meet industry demand.
The curriculum covers air handling, hydronics, AC and DC circuits, sheet metal ductwork, vent system installation, and troubleshooting of mechanical and electronic controls. This move signifies UTI's commitment to executing its strategy of growth, diversification, and optimization.
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Shares of UTI have inched up 0.8% on Apr 4, 2024, during the after-hour trading session. Furthermore, the stock has gained 17.2% so far this year, outperforming the Zacks Schools industry's 4.3% growth.
Focus on UTI Division
Universal Technical consistently focuses on growth and diversification initiatives to maintain its growth momentum. Its proven education and employment model reflects consistent graduation and in-field employment rates, along with rooted partnerships with top industry participants and employers. The company's focus on driving its operational initiatives helps it optimally prepare and position students for fulfilling careers in the significantly demanding fields that it serves.
During the first quarter of fiscal 2024, revenues from the UTI division increased 9.3% year over year to $115.4 million. The upside was backed by higher student starts. New student starts totaled 2,314, up 17.2% from a year ago. The company's most recent program expansions drove the performance.
UTI division's expansion includes recent program launches and plans for broader expansion across its campus footprint, encompassing MIAT-sourced aviation skilled trades and energy programs. Additionally, three more HVAC programs are set to launch this year, with a fourth expected in early fiscal 2025.
Zacks Rank & Other Key Picks
Universal Technical currently sports a Zacks Rank #1 (Strong Buy).
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Hyatt Hotels Corporation H presently carries a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 17.8% on average. Shares of H have rallied 44.1% in the past year.
The Zacks Consensus Estimate for H's 2024 sales and EPS indicates a rise of 3.5% and 27%, respectively, from the year-ago levels.
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