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Why Is UGI (UGI) Down 14.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for UGI (UGI - Free Report) . Shares have lost about 14.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is UGI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
UGI's Q1 Earnings Miss Estimates, Revenues Beat Y/Y
UGI Corporation posted first-quarter fiscal 2022 operating earnings per share (EPS) of 93 cents, which lagged the Zacks Consensus Estimate of $1.23 by 24.4%. The bottom line narrowed 21.19% from the year-ago earnings of $1.18 per share.
UGI generated a GAAP earnings loss of 46 cents per share for the reported fiscal quarter, down from the year-ago quarter’s earnings of $1.44.
Quarterly earnings were impacted by warmer weather in the United States in December and significant increases and volatility in commodity prices on LPG and energy marketing margins in Europe, partially offset by incremental contributions from strategic investments in natural gas businesses.
Total Revenues
Revenues of $2,673 million for the fiscal first quarter of 2022 improved 38.4% from the year-ago period’s number of $1,932 million and beat the Zacks Consensus Estimate of $2,228 million by nearly 20%.
Segmental Results
AmeriGas Propane: Revenues of $778 million for the quarter under review were up 16.81% from the year-ago quarter’s $666 million.
UGI International: Revenues totaled $1,049 million, up 49.9% from the year-ago quarter’s $700 million.
Midstream & Marketing: Revenues of $535 million for the reported quarter increased 56.9 % from the year-ago quarter’s $341 million.
UGI Utilities: Revenues of $419 million were up 39.7% from the year-ago quarter’s $300 million.
Corporate & Other: This segment incurred a loss of $108 million, wider than the loss of $75 million reported in the comparable quarter of last year.
Highlights of the Release
During the reported quarter, UGI got key regulatory approval for the joint venture with SHV Energy for the production of Renewable Dimethyl Ether and announced a partnership with Vertimass to produce and distribute renewable fuels within the United States and Europe.
Despite warm weather in UGI’s service territories, natural gas businesses delivered strong results due to incremental earnings from Mountaineer and the higher margin from renewable energy marketing activities.
Total interest expenses of $81 million were up 3.8% from the year-ago quarter’s $78 million.
Guidance
UGI does not provide fiscal EPS guidance until the completion of the second quarter of the fiscal but it has reiterated the EPS growth rate in the range of 6-10% over the long-term.
The Zacks Consensus Estimate for EPS is pegged at $3.25 for the fiscal year 2022.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, UGI has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
UGI has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is UGI (UGI) Down 14.6% Since Last Earnings Report?
A month has gone by since the last earnings report for UGI (UGI - Free Report) . Shares have lost about 14.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is UGI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
UGI's Q1 Earnings Miss Estimates, Revenues Beat Y/Y
UGI Corporation posted first-quarter fiscal 2022 operating earnings per share (EPS) of 93 cents, which lagged the Zacks Consensus Estimate of $1.23 by 24.4%. The bottom line narrowed 21.19% from the year-ago earnings of $1.18 per share.
UGI generated a GAAP earnings loss of 46 cents per share for the reported fiscal quarter, down from the year-ago quarter’s earnings of $1.44.
Quarterly earnings were impacted by warmer weather in the United States in December and significant increases and volatility in commodity prices on LPG and energy marketing margins in Europe, partially offset by incremental contributions from strategic investments in natural gas businesses.
Total Revenues
Revenues of $2,673 million for the fiscal first quarter of 2022 improved 38.4% from the year-ago period’s number of $1,932 million and beat the Zacks Consensus Estimate of $2,228 million by nearly 20%.
Segmental Results
AmeriGas Propane: Revenues of $778 million for the quarter under review were up 16.81% from the year-ago quarter’s $666 million.
UGI International: Revenues totaled $1,049 million, up 49.9% from the year-ago quarter’s $700 million.
Midstream & Marketing: Revenues of $535 million for the reported quarter increased 56.9 % from the year-ago quarter’s $341 million.
UGI Utilities: Revenues of $419 million were up 39.7% from the year-ago quarter’s $300 million.
Corporate & Other: This segment incurred a loss of $108 million, wider than the loss of $75 million reported in the comparable quarter of last year.
Highlights of the Release
During the reported quarter, UGI got key regulatory approval for the joint venture with SHV Energy for the production of Renewable Dimethyl Ether and announced a partnership with Vertimass to produce and distribute renewable fuels within the United States and Europe.
Despite warm weather in UGI’s service territories, natural gas businesses delivered strong results due to incremental earnings from Mountaineer and the higher margin from renewable energy marketing activities.
Total interest expenses of $81 million were up 3.8% from the year-ago quarter’s $78 million.
Guidance
UGI does not provide fiscal EPS guidance until the completion of the second quarter of the fiscal but it has reiterated the EPS growth rate in the range of 6-10% over the long-term.
The Zacks Consensus Estimate for EPS is pegged at $3.25 for the fiscal year 2022.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, UGI has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
UGI has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.