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UGI Corporation (UGI - Free Report) reported third-quarter fiscal 2021 adjusted earnings of 13 cents per share, beating the Zacks Consensus Estimate of 11 cents by 18.2%. The bottom line also improved 62.5% from the year-ago quarter’s earnings of 8 cents per share.
It generated GAAP earnings of 71 cents per share for the reported quarter, up from the year-ago quarter’s 41 cents.
Results benefited from the company’s diversified business, increased total margins at UGI International and ahike in UGI Utilities’ base rates, which came into effect on Jan 1, 2021.
Concurrent to the earnings release, management announced the joint venture (Hamilton RNG) between the company’s subsidiary UGI Energy Services' unit and Synthica Energy, LLC. The deal was inked to develop innovative food waste digester projects for producing renewable natural gas in Ohio and Kentucky.
Revenues
Revenues of $1,496 million for the fiscal third quarter improved 24.8% from the year-ago number of $1,199 million.
AmeriGas Propane: Revenues of $526 million for the quarter under review were up 16.6% from the year-ago number.
UGI International: Revenues summed $572 million, up 54.2% from the year-ago figure.
Midstream & Marketing: Revenues of $261 million for the reported quarter increased 17.6% year over year.
UGI Utilities: Revenues of $181 million were up 1.1% from the year-ago figure.
Corporate & Other: This segment incurred a loss of $44 million, wider than the $24 million loss reported in the comparable period of last year.
Highlights of the Release
In May, the utility announced plans to reduce Scope I GHG Emissions by 55% within 2025. In the same month, UGI International and SHV Energy announced plans to launch a JV for promoting the usage and production of Renewable Dimethyl Ether (rDME). The company got key regulatory approvals for its Mountaineer Gas Company acquisition. The deal is likely to be complete in the current fiscal year.
Total interest expenses of $77 million were down 3.8% from the prior-year figure.
Guidance
The utility expects its fiscal 2021 adjusted earnings per share to be at the higher end of the prior expected range of $2.90-$3. The Zacks Consensus Estimate for the same is pegged at $3.
ONE Gas Inc. (OGS - Free Report) reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.
ONEOK Inc (OKE - Free Report) posted second-quarter 2021 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 1.3%.
Atmos Energy Corporation (ATO - Free Report) posted second-quarter 2021 operating earnings of 78 cents per share, surpassing the Zacks Consensus Estimate of 74 cents by 5.4%.
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UGI's Q3 Earnings Surpass Estimates, Revenues Improve Y/Y
UGI Corporation (UGI - Free Report) reported third-quarter fiscal 2021 adjusted earnings of 13 cents per share, beating the Zacks Consensus Estimate of 11 cents by 18.2%. The bottom line also improved 62.5% from the year-ago quarter’s earnings of 8 cents per share.
It generated GAAP earnings of 71 cents per share for the reported quarter, up from the year-ago quarter’s 41 cents.
Results benefited from the company’s diversified business, increased total margins at UGI International and ahike in UGI Utilities’ base rates, which came into effect on Jan 1, 2021.
Concurrent to the earnings release, management announced the joint venture (Hamilton RNG) between the company’s subsidiary UGI Energy Services' unit and Synthica Energy, LLC. The deal was inked to develop innovative food waste digester projects for producing renewable natural gas in Ohio and Kentucky.
Revenues
Revenues of $1,496 million for the fiscal third quarter improved 24.8% from the year-ago number of $1,199 million.
UGI Corporation Price, Consensus and EPS Surprise
UGI Corporation price-consensus-eps-surprise-chart | UGI Corporation Quote
Segmental Revenues
AmeriGas Propane: Revenues of $526 million for the quarter under review were up 16.6% from the year-ago number.
UGI International: Revenues summed $572 million, up 54.2% from the year-ago figure.
Midstream & Marketing: Revenues of $261 million for the reported quarter increased 17.6% year over year.
UGI Utilities: Revenues of $181 million were up 1.1% from the year-ago figure.
Corporate & Other: This segment incurred a loss of $44 million, wider than the $24 million loss reported in the comparable period of last year.
Highlights of the Release
In May, the utility announced plans to reduce Scope I GHG Emissions by 55% within 2025. In the same month, UGI International and SHV Energy announced plans to launch a JV for promoting the usage and production of Renewable Dimethyl Ether (rDME). The company got key regulatory approvals for its Mountaineer Gas Company acquisition. The deal is likely to be complete in the current fiscal year.
Total interest expenses of $77 million were down 3.8% from the prior-year figure.
Guidance
The utility expects its fiscal 2021 adjusted earnings per share to be at the higher end of the prior expected range of $2.90-$3. The Zacks Consensus Estimate for the same is pegged at $3.
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.
Peer Releases
ONE Gas Inc. (OGS - Free Report) reported second-quarter 2021 earnings of 56 cents per share, beating the Zacks Consensus Estimate of 49 cents by 14.3%.
ONEOK Inc (OKE - Free Report) posted second-quarter 2021 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 76 cents by 1.3%.
Atmos Energy Corporation (ATO - Free Report) posted second-quarter 2021 operating earnings of 78 cents per share, surpassing the Zacks Consensus Estimate of 74 cents by 5.4%.