Ferrellgas (FGP) Q3 Earnings & Revenues Lag Estimates

Ferrellgas Partners LP (NYSE:FGP) reported third-quarter fiscal 2017 adjusted earnings of 7 cents per unit, lagging the Zacks Consensus Estimate of 10 cents by 30.0%. Further, quarterly earnings were 63.1% lower than the year-ago earnings of 19 cents.

Total Revenue

In the reported quarter, Ferrellgas Partners’ total revenue came in at $538.1 million, missing the Zacks Consensus Estimate of $573 million by 6.1%.

However on a year-over-year basis, the partnership’s top line improved 5.6% primarily owing to better contribution from Propane and other gas liquids sales, as well as Midstream operations. Meanwhile the Other segment plunged 46.4% year over year.

Highlights of the Release

In the reported quarter, 212.2 million gallons of Propane were sold compared with 223.4 million gallons in the prior-year quarter.

Operating expenses in the reported quarter were $104.7 million, down 9.1% from the prior-year level.

General and administrative expenses for the quarter decreased 20.2% to $9.9 million from $12.4 million in the prior-year period.

Operating income in the reported quarter was $46.2 million, down 14.8% year over year. Despite a higher sales volume, margins in the reported quarter were lower due to customer mix.

Interest expenses increased to $39.9 million in the quarter from $34.7 million a year ago, reflecting an increase of 16.3%.

Financial Position

Ferrellgas Partners’ cash and cash equivalents were $9.5 million as of Apr 30, 2017, compared with $4.9 million as of Jul 31, 2016.

Long-term debt was $1,984.2 million as of Apr 30, 2017, up from $1,941.3 million as of Jul 31, 2016.

Peer Releases

Sunoco LP (NYSE:SUN) reported first-quarter 2017 loss of 22 cents per unit, lagging the Zacks Consensus Estimate of earnings of 6 cents by 466.67%.

Genesis Energy LP (NYSE:GEL) reported first-quarter 2017 earnings of 23 cents per unit, beating the Zacks Consensus Estimate of 22 cents by 4.55%.

AmeriGas Partners LP (NYSE:APU) reported first-quarter 2017 earnings of $1.68 per unit, lagging the Zacks Consensus Estimate of $2.16 by 22.22%.

Zacks Rank

Ferrellgas Partners currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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