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UGI Q2 Earnings Surpass Estimates, 2021 EPS Guidance Up
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UGI Corporation (UGI - Free Report) reported second-quarter fiscal 2021 adjusted earnings of $1.99 per share, beating the Zacks Consensus Estimate of $1.72 by 15.7%. The bottom line also improved by 27.6% from the year-ago quarter’s earnings of $1.56 per share.
It generated GAAP earnings of $2.33 per share for the reported quarter, up from the year-ago quarter’s figure of $1.07.
Results benefited from extreme weather conditions along with increase in UGI Utilities’ base rates, which came into effect on Jan 1, 2021.
Revenues
Revenues of $2,581 million for the fiscal second quarter improved 15.8% from the year-ago number of $2,229 million.
AmeriGas Propane: Revenues of $940 million for the quarter under review were up 17.2% from the year-ago number.
UGI International: Revenues summed $834 million, up 18.5% from the year-ago figure.
Midstream & Marketing: Revenues of $484 million for the reported quarter increased 14.7% year over year.
UGI Utilities: Revenues of $442 million were up 12.5% from the year-ago figure.
Corporate & Other: This segment incurred a loss of $119 million, wider than the loss of $92 million in the comparable period last year.
Highlights of the Release
During the quarter, it completed the buyout of Pine Run Midstream, which was immediately accretive to its earnings. The company remains on track to complete the acquisition of Mountaineer Gas Company in the second half the ongoing year.
Total interest expenses of $78 million were down 6% from the prior-year figure.
Dividend Update
Concurrent to the release, the utility hiked its quarterly dividend by 4.5% to 34.5 cents per share. This marks the 34th consecutive annual dividend increase.
Guidance
The utility increased its fiscal 2021 adjusted earnings per share expectation to $2.90-$3 from the prior guidance of $2.65-$2.95. Also, it expects its earnings to grow 6-10% and dividend to rise 4% in the long term.
ONE Gas Inc. (OGS - Free Report) reported first-quarter 2021 earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.78 by 0.6%.
SempraEnergy’s (SRE - Free Report) first-quarter 2021 adjusted earnings per share came in at $2.95, surpassing the Zacks Consensus Estimate of $2.77 by 6.5%.
Atmos Energy Corporation (ATO - Free Report) posted second-quarter fiscal 2021 earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate of $2.05 by 12.2%.
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UGI Q2 Earnings Surpass Estimates, 2021 EPS Guidance Up
UGI Corporation (UGI - Free Report) reported second-quarter fiscal 2021 adjusted earnings of $1.99 per share, beating the Zacks Consensus Estimate of $1.72 by 15.7%. The bottom line also improved by 27.6% from the year-ago quarter’s earnings of $1.56 per share.
It generated GAAP earnings of $2.33 per share for the reported quarter, up from the year-ago quarter’s figure of $1.07.
Results benefited from extreme weather conditions along with increase in UGI Utilities’ base rates, which came into effect on Jan 1, 2021.
Revenues
Revenues of $2,581 million for the fiscal second quarter improved 15.8% from the year-ago number of $2,229 million.
UGI Corporation Price, Consensus and EPS Surprise
UGI Corporation price-consensus-eps-surprise-chart | UGI Corporation Quote
Segmental Revenues
AmeriGas Propane: Revenues of $940 million for the quarter under review were up 17.2% from the year-ago number.
UGI International: Revenues summed $834 million, up 18.5% from the year-ago figure.
Midstream & Marketing: Revenues of $484 million for the reported quarter increased 14.7% year over year.
UGI Utilities: Revenues of $442 million were up 12.5% from the year-ago figure.
Corporate & Other: This segment incurred a loss of $119 million, wider than the loss of $92 million in the comparable period last year.
Highlights of the Release
During the quarter, it completed the buyout of Pine Run Midstream, which was immediately accretive to its earnings. The company remains on track to complete the acquisition of Mountaineer Gas Company in the second half the ongoing year.
Total interest expenses of $78 million were down 6% from the prior-year figure.
Dividend Update
Concurrent to the release, the utility hiked its quarterly dividend by 4.5% to 34.5 cents per share. This marks the 34th consecutive annual dividend increase.
Guidance
The utility increased its fiscal 2021 adjusted earnings per share expectation to $2.90-$3 from the prior guidance of $2.65-$2.95. Also, it expects its earnings to grow 6-10% and dividend to rise 4% in the long term.
Zacks Rank
UGI Corp. currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
ONE Gas Inc. (OGS - Free Report) reported first-quarter 2021 earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.78 by 0.6%.
SempraEnergy’s (SRE - Free Report) first-quarter 2021 adjusted earnings per share came in at $2.95, surpassing the Zacks Consensus Estimate of $2.77 by 6.5%.
Atmos Energy Corporation (ATO - Free Report) posted second-quarter fiscal 2021 earnings of $2.30 per share, which surpassed the Zacks Consensus Estimate of $2.05 by 12.2%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>