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UGI Corp. (UGI) Q4 Loss Narrower Than Expected, Sales Miss

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UGI Corporation (UGI - Free Report) reported fourth-quarter fiscal 2020 adjusted loss of 14 cents per share, narrower than the Zacks Consensus Estimate of a loss of 33 cents. In the year-ago quarter, the company reported a loss of 37 cents per share.

It generated GAAP earnings of 5 cents per share for the reported quarter against the year-ago quarter’s GAAP loss of 27 cents.

Revenues

Revenues of $1,124.3 million for the fiscal fourth quarter missed the Zacks Consensus Estimate of $1,249 million by 10%. The top line also declined 2.3% from the year-ago figure of $1,150 million.

UGI Corporation Price, Consensus and EPS Surprise

UGI Corporation Price, Consensus and EPS Surprise

UGI Corporation price-consensus-eps-surprise-chart | UGI Corporation Quote

Segmental Revenues

AmeriGas Propane: Revenues of $398 million for the quarter under review were down 3.2% from the year-ago number.

UGI International: Revenues summed $401 million, up 2.6% from the year-ago figure.

Midstream & Marketing: Revenues of $230 million for the reported quarter fell 6.9% year over year.

UGI Utilities: Revenues of $129 million were down 3% from the year-ago reported figure.

Corporate & Other: This segment incurred a loss of $34 million, wider than the loss of $32 million in fourth-quarter fiscal 2019.

Highlights of the Release

AmeriGas Propane increased total investment in the LPG business transformation project to $200 million and the company expects to realize $140 million in permanent annual benefits by fiscal 2022-end.

UGI Utilities invested $348 million of capital, and added nearly 12,000 residential and commercial heating customers in fiscal 2020. This is likely to have a positive impact on the top line in fiscal 2021.

Total interest expenses of $75 million were down 1.3% from the prior-year figure.

Guidance

The company initiated its fiscal 2021 adjusted earnings per share guidance of $2.65-$2.95. The midpoint of the guided range is nearly 12% higher than UGI Corp.’s fiscal 2020 adjusted earnings per share of $2.67. The Zacks Consensus Estimate for fiscal 2021 earnings is currently pegged at $2.86 per share, which exceeds the midpoint of the above guided range.

UGI Corp. expects to invest $430 million in fiscal 2021.

Zacks Rank

UGI Corp. 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

National Fuel Gas Company (NFG - Free Report) posted fourth-quarter fiscal 2020 operating earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 34 cents by 17.7%.

MDU Resources Group Inc. (MDU - Free Report) reported third-quarter 2020 operating earnings of 76 cents per share, which increased 11.8% from the year-ago level.

ONE Gas Inc. (OGS - Free Report) reported third-quarter 2020 earnings of 39 cents per share, which beat the Zacks Consensus Estimate of 36 cents by 8.3%

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