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UGI Q2 Earnings Miss Estimates, Revenues Decline Y/Y
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UGI Corporation (UGI - Free Report) reported fiscal second-quarter 2023 operating earnings of $1.68 per share, which missed the Zacks Consensus Estimate of $1.84 by 8.7%. The bottom line also declined 12% from the year-ago quarter’s level of $1.91.
Total Revenues
Revenues of $3,106 million missed the Zacks Consensus Estimate of $4,401 million by 29.4%. The top line also declined 10.4% from the year-ago quarter’s figure of $3,466 million.
AmeriGas Propane: Revenues of $867 million were down 17% from that recorded in the year-ago quarter. Retail gallons sold during the quarter declined 15% year over year. This was due to a shortage of drivers and warmer weather conditions (than the previous year) that also contributed to customer attrition and limited structural conservation.
UGI International: Revenues totaled nearly $948 million, down 23% from the year-ago level. Retail volume decreased 10% due to warmer weather conditions.
Midstream & Marketing: Revenues of $638 million were down 5% year over year.
UGI Utilities: Sales of $774 million were up 9% from that registered in the year-ago period.
Corporate & Other: This segment incurred a loss of $121 million, narrower than the prior-year quarter’s loss of $184 million.
Highlights of the Release
As of Mar 31, 2023, UGI reported a strong balance sheet, with available liquidity of approximately $1.9 billion.
Total interest expenses came in at $93 million, up 13.4% from the year-ago quarter’s $82 million.
During the reported quarter, the company entered into a joint venture with Archaea Energy to develop a renewable natural gas project in Pennsylvania. This brought the total renewables investment to more than $500 million to date.
Guidance
UGI reaffirmed its fiscal 2023 adjusted earnings guidance in the range of $2.75-$2.90 per share. The Zacks Consensus Estimate for the same is pegged at $2.87 per share, higher than $2.82, the midpoint of the company’s guided range. lower than the midpoint of the company’s guided range.
UGI aims to deliver 6-10% earnings per share (EPS) growth and 4% dividend growth over the long term.
Atmos Energy Corporation (ATO - Free Report) reported fiscal second-quarter 2023 earnings of $2.48 per share, which beat the Zacks Consensus Estimate of $2.47 by 0.4%.
ATO’s long-term (three to five years) earnings growth rate is currently pinned at 7.48%. The consensus estimate for 2023 EPS stands at $6, indicating a year-over-year increase of 7.14%.
Spire Inc. (SR - Free Report) reported second-quarter fiscal 2023 earnings of $3.70 per share, which beat the Zacks Consensus Estimate of $3.49 by 6%.
SR’s long-term earnings growth rate is currently pinned at 4.22%. The consensus estimate for 2023 EPS stands at $4.22, indicating a year-over-year increase of 9.33%.
ONE Gas, Inc. (OGS - Free Report) reported first-quarter 2023 EPS of $1.84, which missed the Zacks Consensus Estimate of $1.85 by 0.54%.
OGS’ long-term earnings growth rate is currently pinned at 5%. The consensus estimate for 2023 EPS stands at $4.14, indicating a year-over-year increase of 1.47%.
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UGI Q2 Earnings Miss Estimates, Revenues Decline Y/Y
UGI Corporation (UGI - Free Report) reported fiscal second-quarter 2023 operating earnings of $1.68 per share, which missed the Zacks Consensus Estimate of $1.84 by 8.7%. The bottom line also declined 12% from the year-ago quarter’s level of $1.91.
Total Revenues
Revenues of $3,106 million missed the Zacks Consensus Estimate of $4,401 million by 29.4%. The top line also declined 10.4% from the year-ago quarter’s figure of $3,466 million.
UGI Corporation Price, Consensus and EPS Surprise
UGI Corporation price-consensus-eps-surprise-chart | UGI Corporation Quote
Segmental Results
AmeriGas Propane: Revenues of $867 million were down 17% from that recorded in the year-ago quarter. Retail gallons sold during the quarter declined 15% year over year. This was due to a shortage of drivers and warmer weather conditions (than the previous year) that also contributed to customer attrition and limited structural conservation.
UGI International: Revenues totaled nearly $948 million, down 23% from the year-ago level. Retail volume decreased 10% due to warmer weather conditions.
Midstream & Marketing: Revenues of $638 million were down 5% year over year.
UGI Utilities: Sales of $774 million were up 9% from that registered in the year-ago period.
Corporate & Other: This segment incurred a loss of $121 million, narrower than the prior-year quarter’s loss of $184 million.
Highlights of the Release
As of Mar 31, 2023, UGI reported a strong balance sheet, with available liquidity of approximately $1.9 billion.
Total interest expenses came in at $93 million, up 13.4% from the year-ago quarter’s $82 million.
During the reported quarter, the company entered into a joint venture with Archaea Energy to develop a renewable natural gas project in Pennsylvania. This brought the total renewables investment to more than $500 million to date.
Guidance
UGI reaffirmed its fiscal 2023 adjusted earnings guidance in the range of $2.75-$2.90 per share. The Zacks Consensus Estimate for the same is pegged at $2.87 per share, higher than $2.82, the midpoint of the company’s guided range.
lower than the midpoint of the company’s guided range.
UGI aims to deliver 6-10% earnings per share (EPS) growth and 4% dividend growth over the long term.
Zacks Rank
UGI 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
Atmos Energy Corporation (ATO - Free Report) reported fiscal second-quarter 2023 earnings of $2.48 per share, which beat the Zacks Consensus Estimate of $2.47 by 0.4%.
ATO’s long-term (three to five years) earnings growth rate is currently pinned at 7.48%. The consensus estimate for 2023 EPS stands at $6, indicating a year-over-year increase of 7.14%.
Spire Inc. (SR - Free Report) reported second-quarter fiscal 2023 earnings of $3.70 per share, which beat the Zacks Consensus Estimate of $3.49 by 6%.
SR’s long-term earnings growth rate is currently pinned at 4.22%. The consensus estimate for 2023 EPS stands at $4.22, indicating a year-over-year increase of 9.33%.
ONE Gas, Inc. (OGS - Free Report) reported first-quarter 2023 EPS of $1.84, which missed the Zacks Consensus Estimate of $1.85 by 0.54%.
OGS’ long-term earnings growth rate is currently pinned at 5%. The consensus estimate for 2023 EPS stands at $4.14, indicating a year-over-year increase of 1.47%.