A month has gone by since the last earnings report for UGI (UGI). Shares have added about 1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is UGI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
UGI Corp's Earnings & Revenues Miss Estimates in Q3
UGI Corp. delivered third-quarter fiscal 2019 adjusted earnings 13 cents per share, which missed the Zacks Consensus Estimate of 20 cents by 35%. However, the bottom line increased 44.4% from the prior-year quarter’s figure of 9 cents.
The company incurred GAAP loss of 1 cent in the reported quarter against the year-ago quarter’s GAAP earnings of 30 cents.
Revenues
Revenues of $1,363.7 million in the quarter missed the Zacks Consensus Estimate of $1,431 million by 4.72%. The top line declined 5.3% from the year-ago quarter’s figure of $1,440.9 million.
Segment Revenues
AmeriGas Propane: The segment generated revenues of $478.7 million in the quarter under review, down 9.4% from year-ago quarter’s tally.
UGI International:This segment generated revenues of $486.6 million in the quarter under review, down 8.8% from year-ago quarter’s figure.
Midstream & Marketing:This segment generated revenues of $267.3 million in the quarter under review, up from $263.8 million in the prior-year quarter.
UGI Utilities:This segment generated revenues of $163.9 million in the quarter under review, up 0.3% from year-ago quarter’s reported figure.
Corporate & Other:This segment incurred loss of $32.8 million narrower than $44.8 million loss incurred in fiscal third quarter of 2018.
Operational Highlights
Total operating income in the fiscal third quarter amounted to $9.6 million compared with $29.5 million in the year-ago quarter.
Total interest expenses amounted to $60.5 million, up 7% from the prior-year quarter’s tally.
The acquisition of Columbia Midstream Group was closed on Aug 1. The merger with AmeriGas received regulatory approval and is expected to close later this quarter.
Guidance
The company expects fiscal 2019 adjusted earnings per share to be at the lower end of its guidance range of $2.40-$2.60.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 44.44% due to these changes.
VGM Scores
Currently, UGI has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, UGI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
UGI Corporation (UGI): Free Stock Analysis Report
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