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Just Energy (JE) Q2 Loss Wider than Expected, Sales Miss

OKE MDU JE OGS

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Just Energy Group Inc. (JE - Free Report) reported adjusted loss of 84 cents per share in the second quarter of fiscal 2017, wider than both the Zacks Consensus Estimate of a loss of 17 cents and the prior-year quarter loss of 47 cents.

Total Revenue

Just Energy reported net sales of $738.9 million (C$992.8 million) in the fiscal second quarter, missing the Zacks Consensus Estimate of $870 million by 15.1%. Quarterly revenues were also down 8.7% from (C$1,087.3 million) on a year-over-year basis.

Highlights of the Release

Administrative expenses increased 15.9% from $29.9 million (C$40.3 million) to $34.8 million (C$46.7 million).

Gross margin improved 9.8% to $136.6 million (C$183.5 million) primarily on the back of continued margin improvement efforts and strong contribution from the U.S. markets.

Base EBITDA grew 24.5% to $42.3 million (C$56.9 million) from the year-ago tally of $34 million (C$45.7 million).

JUST ENERGY GRP Price, Consensus and EPS Surprise

 

Financial Screening

As of Sep 30, 2016, Just Energy had cash and cash equivalents of $88.4 million (C$118.8 million), compared with $95 million (C$127.6 million) as of Mar 31, 2016.

Total debt as of Sep 30, 2016 was $479.3 million(C$644 million), down from $491.6 million (C$660.5 million) as of Mar 31, 2016.

Guidance

Just Energy reiterated its fiscal 2017 base EBITDA guidance of $166–$173.4 million (C$223–C$233 million).

Peer Releases

ONE Gas, Inc.’s (OGS - Free Report) third-quarter earnings of 24 cents per share outpaced the Zacks Consensus Estimate of 19 cents by 26.3%.

ONEOK Inc. (OKE - Free Report) reported third-quarter 2016 operating earnings of 44 cents per share, outpacing the Zacks Consensus Estimate of 43 cents by 2.3%.

MDU Resources Group Inc. (MDU - Free Report) reported third-quarter 2016 operating earnings of 45 cents per share, beating the Zacks Consensus Estimate of 43 cents by 4.7%.

Zacks Rank

Just Energy Group carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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