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Why Is Ferrellgas Partners, L.P. (FGP) Down 17.2% Since Last Earnings Report?

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It has been about a month since the last earnings report for Ferrellgas Partners, L.P. . Shares have lost about 17.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Ferrellgas Partners, L.P. 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.

Ferrellgas Partners Beats Q3 Earnings, Misses Revenues

Ferrellgas Partners delivered third-quarter fiscal 2019 adjusted earnings of 21 cents per unit, which beat the Zacks Consensus Estimate of 14 cents by 50%. The partnership generated earnings of 11 cents in the prior-year quarter.

Total Revenues

In the quarter, Ferrellgas Partners’ total revenues amounted to $480 million, down 7% from $516 million in the prior-year quarter.

Highlights of the Release

In the reported quarter, nearly 264.1 million gallons of propane were sold, up 7% from 246.3 million gallons in the prior-year quarter. Customer base increased 4% year over year. The partnership’s current Blue Rhino tank exchange sales locations totaled in excess of 54,300, up more than 6% from prior-year quarter’s levels.

Total Retail propane sales volume increased approximately 8% and gross margin dollars increased nearly 7% in the quarter under review. Results improved from the prior-year quarter’s figures, courtesy of colder-than-normal weather.

Operating expenses amounted to $120 million, up from $116.5 million in the prior-year quarter.

General and administrative expenses amounted to $11.5 million compared with $11.6 million in the prior-year quarter.

Interest expenses were $44.2 million, up from $40.4 million in the prior-year quarter.

Financial Position

Ferrellgas Partners’ cash and cash equivalents were $45.4 million as of Apr 30, 2019 compared with $119.3 million as of Jul 31, 2018.

Long-term debt was $2,084.5 million as of Arp 30, 2019 compared with $2,078.6 million as of Jul 31, 2018.
 

How Have Estimates Been Moving Since Then?

Fresh estimates followed a downward path over the past two months.

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