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UGI's Q3 Earnings Miss Estimates, Revenues Decrease Y/Y
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UGI Corporation (UGI - Free Report) reported third-quarter fiscal 2023 break-even earnings per share, which missed the Zacks Consensus Estimate of 7 cents by 100%. In the year-ago quarter, the company reported earnings of 6 cents.
UGI’s adjusted earnings fell year over year as higher gas rates, increased customer growth in regulated utilities, higher margins from natural gas gathering and marketing activities, and increased LPG unit margins were offset by a rise in operating and administrative expenses across all its reportable segments.
Total Revenues
Revenues of $1,659 million missed the Zacks Consensus Estimate of $2,515 million by 34%. The top line also declined 18.4% from the year-ago quarter’s figure of $2,033 million.
AmeriGas Propane: Revenues of $514 million were down 14% from the year-ago quarter. Retail gallons sold during the quarter declined 6% year over year. This was due to customer attrition and structural conservation.
UGI International: Revenues totaled nearly $611 million, down 17% from the year-ago level.
Midstream & Marketing: Revenues of $279 million were up 47% year over year. This was due to the timing of the settlement of storage hedge contracts in the prior year.
UGI Utilities: Sales of $278 million were up 1% from that registered in the year-ago period. The rise was because of an increase in the Gas Utility base rates.
Corporate & Other: This segment incurred a loss of $23 million, narrower than the prior-year quarter’s loss of $101 million.
Highlights of the Release
As of Jun 30, 2023, UGI reported a strong balance sheet, with available liquidity of approximately $1.8 billion.
Total interest expenses were $96 million, up 17.1% from the year-ago quarter’s $82 million.
Guidance
UGI reaffirmed its fiscal 2023 adjusted earnings to be at the low end of its guidance of $2.75-$2.90 per share. The Zacks Consensus Estimate for the same is pegged at $2.76 per share, lower than $2.82, the midpoint of the company’s guided range.
UGI aims to deliver 6-10% earnings per share growth and 4% dividend growth over the long term.
Atmos Energy (ATO - Free Report) reported fiscal third-quarter 2023 earnings of 94 cents per share, missing the Zacks Consensus Estimate of 97 cents per share by 3.1%. The earnings showed an improvement of 2.2% from the prior-year quarter.
The Zacks Consensus Estimate for ATO’s 2023 earnings stands at $6.06 per share, implying a year-over-year improvement of 8.2%.
Spire Inc. (SR - Free Report) reported third-quarter fiscal 2023 loss of 42 cents per share, much wider than the Zacks Consensus Estimate of a loss of 2 cents.
The Zacks Consensus Estimate for SR’s 2023 earnings stands at $4.27 per share, implying a year-over-year improvement of 10.6%.
National Fuel Gas Company (NFG - Free Report) reported third-quarter fiscal 2023 earnings of $1.01 per share, beating the Zacks Consensus Estimate of 90 cents by 12.2%.
The Zacks Consensus Estimate for NFG’s 2023 earnings stands at $5.11 per share, implying a year-over-year decrease of 13.1%
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UGI's Q3 Earnings Miss Estimates, Revenues Decrease Y/Y
UGI Corporation (UGI - Free Report) reported third-quarter fiscal 2023 break-even earnings per share, which missed the Zacks Consensus Estimate of 7 cents by 100%. In the year-ago quarter, the company reported earnings of 6 cents.
UGI’s adjusted earnings fell year over year as higher gas rates, increased customer growth in regulated utilities, higher margins from natural gas gathering and marketing activities, and increased LPG unit margins were offset by a rise in operating and administrative expenses across all its reportable segments.
Total Revenues
Revenues of $1,659 million missed the Zacks Consensus Estimate of $2,515 million by 34%. The top line also declined 18.4% from the year-ago quarter’s figure of $2,033 million.
UGI Corporation Price, Consensus and EPS Surprise
UGI Corporation price-consensus-eps-surprise-chart | UGI Corporation Quote
Segmental Results
AmeriGas Propane: Revenues of $514 million were down 14% from the year-ago quarter. Retail gallons sold during the quarter declined 6% year over year. This was due to customer attrition and structural conservation.
UGI International: Revenues totaled nearly $611 million, down 17% from the year-ago level.
Midstream & Marketing: Revenues of $279 million were up 47% year over year. This was due to the timing of the settlement of storage hedge contracts in the prior year.
UGI Utilities: Sales of $278 million were up 1% from that registered in the year-ago period. The rise was because of an increase in the Gas Utility base rates.
Corporate & Other: This segment incurred a loss of $23 million, narrower than the prior-year quarter’s loss of $101 million.
Highlights of the Release
As of Jun 30, 2023, UGI reported a strong balance sheet, with available liquidity of approximately $1.8 billion.
Total interest expenses were $96 million, up 17.1% from the year-ago quarter’s $82 million.
Guidance
UGI reaffirmed its fiscal 2023 adjusted earnings to be at the low end of its guidance of $2.75-$2.90 per share. The Zacks Consensus Estimate for the same is pegged at $2.76 per share, lower than $2.82, the midpoint of the company’s guided range.
UGI aims to deliver 6-10% earnings per share growth and 4% dividend growth over the long term.
Zacks Rank
UGI currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Atmos Energy (ATO - Free Report) reported fiscal third-quarter 2023 earnings of 94 cents per share, missing the Zacks Consensus Estimate of 97 cents per share by 3.1%. The earnings showed an improvement of 2.2% from the prior-year quarter.
The Zacks Consensus Estimate for ATO’s 2023 earnings stands at $6.06 per share, implying a year-over-year improvement of 8.2%.
Spire Inc. (SR - Free Report) reported third-quarter fiscal 2023 loss of 42 cents per share, much wider than the Zacks Consensus Estimate of a loss of 2 cents.
The Zacks Consensus Estimate for SR’s 2023 earnings stands at $4.27 per share, implying a year-over-year improvement of 10.6%.
National Fuel Gas Company (NFG - Free Report) reported third-quarter fiscal 2023 earnings of $1.01 per share, beating the Zacks Consensus Estimate of 90 cents by 12.2%.
The Zacks Consensus Estimate for NFG’s 2023 earnings stands at $5.11 per share, implying a year-over-year decrease of 13.1%