A month has gone by since the last earnings report for Ferrellgas Partners, L.P. . Shares have lost about 13.5% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is FGP due for a breakout? Before we dive into how investors and analysts have reacted as 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 LP Q1 Loss Wider Than Expected
Ferrellgas Partners LP reported first-quarter fiscal 2018 adjusted loss of 49 cents per unit, significantly wider than the Zacks Consensus Estimate loss of 28 cents. Quarterly loss was also wider than the year-ago loss of 44 cents.
Total Revenues
In the reported quarter, Ferrellgas Partners’ total revenues came in at $454.7 million, beating the Zacks Consensus Estimate of $436 million by 4.2%. Moreover, the top line improved 19.8% from $379.5 million reported a year ago.
The partnership’s top line increased primarily due to higher sales from all the reported segments namely midstream operations, propane and other gas liquids, and others. Notably, Propane and other gas liquids sales improved by 24.9%, Midstream operations’ sales improved by 11.9% and the Other segment’s sales grew by 6.9% respectively.
Highlights of the Release
In the reported quarter, nearly 173 million gallons of Propane were sold compared with 163.2 million gallons in the prior-year quarter.
Operating expenses in the reported quarter were $110.5 million, up 5.2% from the prior-year level.
General and administrative expenses for the quarter under review increased to $13.2 million from $12.5 million in the prior-year period.
Interest expenses increased to $40.8 million in the quarter from $35.4 million a year ago, reflecting increased borrowings to fund acquisitions.
Financial Position
Ferrellgas Partners’ cash and cash equivalents were $7.1 million as of Oct 31, 2017, compared with $5.8 million as of Jul 31, 2017.
Long-term debt was $1,812.2 million as of Oct 31, 2017, down from $1,995.8 million as of Jul 31, 2017.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. There has been one revision lower for the current quarter.
VGM Scores
At this time, FGP has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. 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.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. It's no surprise FGP 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 Ferrellgas Partners (FGP) Down 13.5% Since Its Last Earnings Report?
A month has gone by since the last earnings report for Ferrellgas Partners, L.P. . Shares have lost about 13.5% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is FGP due for a breakout? Before we dive into how investors and analysts have reacted as 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 LP Q1 Loss Wider Than Expected
Ferrellgas Partners LP reported first-quarter fiscal 2018 adjusted loss of 49 cents per unit, significantly wider than the Zacks Consensus Estimate loss of 28 cents. Quarterly loss was also wider than the year-ago loss of 44 cents.
Total Revenues
In the reported quarter, Ferrellgas Partners’ total revenues came in at $454.7 million, beating the Zacks Consensus Estimate of $436 million by 4.2%. Moreover, the top line improved 19.8% from $379.5 million reported a year ago.
The partnership’s top line increased primarily due to higher sales from all the reported segments namely midstream operations, propane and other gas liquids, and others. Notably, Propane and other gas liquids sales improved by 24.9%, Midstream operations’ sales improved by 11.9% and the Other segment’s sales grew by 6.9% respectively.
Highlights of the Release
In the reported quarter, nearly 173 million gallons of Propane were sold compared with 163.2 million gallons in the prior-year quarter.
Operating expenses in the reported quarter were $110.5 million, up 5.2% from the prior-year level.
General and administrative expenses for the quarter under review increased to $13.2 million from $12.5 million in the prior-year period.
Interest expenses increased to $40.8 million in the quarter from $35.4 million a year ago, reflecting increased borrowings to fund acquisitions.
Financial Position
Ferrellgas Partners’ cash and cash equivalents were $7.1 million as of Oct 31, 2017, compared with $5.8 million as of Jul 31, 2017.
Long-term debt was $1,812.2 million as of Oct 31, 2017, down from $1,995.8 million as of Jul 31, 2017.
How Have Estimates Been Moving Since Then?
In the past month, 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, FGP has a nice Growth Score of B, though it is lagging a lot on the momentum front with an F. 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.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of this revision indicates a downward shift. It's no surprise FGP has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.