National Fuel Gas Co. (NYSE:NFG) reported a significant decline in its Q4 2023 adjusted earnings, which fell 34.5% year on year (YoY) to 78 cents per share. This missed the Zacks consensus estimate by 6%. The company's GAAP earnings also saw a YoY decrease of 53.2%, settling at 80 cents per share.
The firm's sales for the quarter were reported at $368.9 million, falling short of the consensus estimate by 17.3%. Operating expenses for the same period were $243.6 million, resulting in an operating income of $125.3 million. Interest expenses over the quarter totaled $28.4 million.
Looking forward, NFG revised its fiscal 2024 earnings guidance to a range of $5.40-$5.90 per share. The company reported cash and temporary investments amounting to $55.4 million, long-term debt of $2,384.5 million, and net cash from operating activities of $1,237.1 million.
In terms of capital expenditure, NFG spent a total of $1,009.9 million in fiscal 2023 and anticipates spending between $865 and $975 million in fiscal 2024. The company also expects a production volume of 390-410 billion cubic feet for the upcoming fiscal year.
InvestingPro Insights
Based on real-time data from InvestingPro, National Fuel Gas Co. (NFG) has a market capitalization of $4750 million. The company's P/E ratio stands at 8.43, indicating a relatively low valuation compared to its earnings. Despite a quarterly revenue decline of -14.71% in Q3 2023, the company's gross profit margin stood strong at 57.89%.
InvestingPro Tips highlight that NFG yields a high return on invested capital and has consistently increased its earnings per share. This strong earnings performance has allowed the company to maintain dividend payments for 53 consecutive years. Furthermore, the company is currently trading at a low P/E ratio relative to its near-term earnings growth, suggesting potential value for investors.
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