Just Energy Group Inc. (TO:JE) reported adjusted earnings of 12 cents per share in the fourth quarter of fiscal 2016, beating the Zacks Consensus Estimate of 10 cents by 20%. The company had reported a loss of 38 cents per share in the prior-year quarter.
Total Revenue
Just Energy reported net sales of $784 million in the fiscal quarter, lagging the Zacks Consensus Estimate of $870 million by 9.9%. Quarterly revenues were also down 22.3% year over year primarily due to lower consumption during this warmer winter weather.
Highlights of the Release
Administrative expenses increased 18% from $32.4 million (C$ 42 million) to $38.2 million (C$ 49.5million) as a result of an increase in U.S.-based currency expenditures as well as costs to serve the growing customer base in the UK.
Selling and marketing expenses were $48 million (C$ 62.3 million), down 3% from $49.4 million (C$ 64 million) reported in the prior-year quarter. This decrease is largely attributable to lower upfront commission expenses as a result of lower gross customer additions in the current period, partially offset by the foreign exchange impact of U.S.-based expenses.
Financial Condition
Cash and cash equivalents as of Mar 31, 2016 were $97.9 million (C$ 127.6 million), compared with $60.5 million (C$ 78.8 million) as of Mar 31, 2015.
Long-term debt as of Mar 31, 2016 was $507.1 (C$ 660.5 million), down from $519.3 million (C$ 676.5 million) as of Mar 31, 2015.
Base funds from operation for the reported quarter were $33.8 million (C$ 43.8 million), compared with $24.6 million (C$ 31.9 million) a year ago.
Peer Releases
ONE Gas, Inc. (NYSE:OGS) reported first-quarter earnings of $1.22 per share, beating the Zacks Consensus Estimate of $1.18 by 3.4%.
National Fuel Gas Company’s (NYSE:NFG) first-quarter earnings of 97 cents per share beat the Zacks Consensus Estimate of 96 cents by a penny.
ONEOK Inc. (NYSE:OKE) reported first-quarter 2016 operating earnings of 40 cents per share, missing the Zacks Consensus Estimate of 42 cents by 4.8%.
Zacks Rank
Just Energy currently carries a Zacks Rank #3 (Hold).
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