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Why Is UGI (UGI) Up 0.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for UGI (UGI - Free Report) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is UGI due for a pullback? 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 catalysts.
UGI Corp. 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 a hike 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.
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 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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, UGI has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, 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 aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
UGI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is UGI (UGI) Up 0.4% Since Last Earnings Report?
A month has gone by since the last earnings report for UGI (UGI - Free Report) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is UGI due for a pullback? 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 catalysts.
UGI's Q3 Earnings Surpass Estimates, Revenues Improve Y/Y
UGI Corp. 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 a hike 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.
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 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.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, UGI has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, 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 aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
UGI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.