It has been more than a month since the last earnings report for Ferrellgas Partners, L.P. . Shares have lost about 12% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Ferrellgas Partners Reports Wider-Than-Expected Q4 Loss
Ferrellgas reported fourth-quarter fiscal 2017 adjusted loss of 57 cents per unit, wider than the Zacks Consensus Estimate loss of 45 cents by 26.7%. Quarterly loss was 77.3% narrower than the year-ago loss of $2.51 per unit.
Total Revenue
In the reported quarter, Ferrellgas Partners’ total revenues came in at $433.4 million, beating the Zacks Consensus Estimate of $427 million by 1.5%.
On a year-over-year basis, the partnership’s top-line improved 5.8% primarily owing to better contribution from Propane and other gas liquids sales, meanwhile Midstream operations and the Other segment decreased1.9% and 4.6%, respectively.
Highlights of the Release
In the reported quarter, nearly 148 million gallons of Propane were sold compared with 143.8 million gallons in the prior-year quarter.
Operating expenses in the reported quarter were $109.5 million, down 1.6% from the prior-year level.
General and administrative expenses for the quarter increased 10.1% to $13.1 million from $11.9 million in the prior-year period.
Interest expenses increased to $40.4 million in the quarter from $35 million a year ago, reflecting an increase of 15.4%.
Financial Position
Ferrellgas Partners’ cash and cash equivalents were $5.8 million as of Jul 31, 2017, compared with $4.9 million as of Jul 31, 2016.
Long-term debt was $1,995.8 million as of Jul 31, 2017, up from $1,941.3 million as of Jul 31, 2016.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
VGM Scores
At this time, Ferrellgas' stock has an average Growth Score of C. However, its Momentum 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 quintile for this investment strategy.
Overall, the stock has an aggregte VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months
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Why Is Ferrellgas (FGP) Down 12% Since the Last Earnings Report?
It has been more than a month since the last earnings report for Ferrellgas Partners, L.P. . Shares have lost about 12% in that time frame, underperforming the market.
Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Ferrellgas Partners Reports Wider-Than-Expected Q4 Loss
Ferrellgas reported fourth-quarter fiscal 2017 adjusted loss of 57 cents per unit, wider than the Zacks Consensus Estimate loss of 45 cents by 26.7%. Quarterly loss was 77.3% narrower than the year-ago loss of $2.51 per unit.
Total Revenue
In the reported quarter, Ferrellgas Partners’ total revenues came in at $433.4 million, beating the Zacks Consensus Estimate of $427 million by 1.5%.
On a year-over-year basis, the partnership’s top-line improved 5.8% primarily owing to better contribution from Propane and other gas liquids sales, meanwhile Midstream operations and the Other segment decreased1.9% and 4.6%, respectively.
Highlights of the Release
In the reported quarter, nearly 148 million gallons of Propane were sold compared with 143.8 million gallons in the prior-year quarter.
Operating expenses in the reported quarter were $109.5 million, down 1.6% from the prior-year level.
General and administrative expenses for the quarter increased 10.1% to $13.1 million from $11.9 million in the prior-year period.
Interest expenses increased to $40.4 million in the quarter from $35 million a year ago, reflecting an increase of 15.4%.
Financial Position
Ferrellgas Partners’ cash and cash equivalents were $5.8 million as of Jul 31, 2017, compared with $4.9 million as of Jul 31, 2016.
Long-term debt was $1,995.8 million as of Jul 31, 2017, up from $1,941.3 million as of Jul 31, 2016.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
Ferrellgas Partners, L.P. Price and Consensus
Ferrellgas Partners, L.P. Price and Consensus | Ferrellgas Partners, L.P. Quote
VGM Scores
At this time, Ferrellgas' stock has an average Growth Score of C. However, its Momentum 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 quintile for this investment strategy.
Overall, the stock has an aggregte VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for value and momentum investors.
Outlook
Estimates have been broadly trending downward for the stock. The magnitude of this revision also indicates a downward shift. Interestingly, the stock has a Zacks Rank #2 (Buy). We are looking for an above average return from the stock in the next few months