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Why Is UGI (UGI) Down 2.6% 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 lost about 2.6% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is UGI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

UGI Corp Q2 Earnings Miss Estimates, Revenues Beat

UGI Corporation delivered second-quarter fiscal 2019 adjusted earnings of $1.43 per share, which missed the Zacks Consensus Estimate of $1.58 by 9.49%. The bottom line declined 15.4% from the prior-year quarter’s figure of $1.69.

Excluding one-time items, the company generated GAAP earnings of $1.38 in the reported quarter compared with the year-ago quarter’s figure of $1.57.

Revenues

Revenues of $2,606 million in the quarter surpassed the Zacks Consensus Estimate of $2,591 million by 0.57%. However, the top line declined 7.3% from the year-ago quarter’s figure of $2,812 million.

Operational Highlights

Total operating income amounted to $538.8 million compared with $591 million in the year-ago quarter.

Total interest expenses amounted to $61 million, up 5% from the prior-year quarter’s tally.

Warmer-than-normal weather during the critical heating months of January and February led to decline in retail volume in AmeriGas,UGI International and Midstream & Marketing operations.

Guidance

The company reaffirmed fiscal 2019 EPS guidance in the range of $2.40-$2.60.


 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates. The consensus estimate has shifted 35.71% due to these changes.

VGM Scores

Currently, UGI has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second 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

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, UGI has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.


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