Back to top

Image: Bigstock

UGI (UGI) Up 6.4% Since Last Earnings Report: Can It Continue?

Read MoreHide Full Article

It has been about a month since the last earnings report for UGI (UGI - Free Report) . Shares have added about 6.4% in that time frame, outperforming 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 drivers.

UGI Q1 Earnings Surpass Estimates, Revenues Decline Y/Y

UGI Corporation reported first-quarter fiscal 2021 adjusted earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.11. The bottom line also improved from the year-ago quarter’s earnings of $1.17 per share.

It generated GAAP earnings of $1.44 per share for the reported quarter, up from the year-ago quarter’s figure of $1.

Revenues

Revenues of $1,932 million for the fiscal first quarter declined 4% from the year-ago number of $2,007 million.

Segmental Revenues

AmeriGas Propane: Revenues of $666 million for the quarter under review were down 9% from the year-ago number.

UGI International: Revenues summed $700 million, up 8% from the year-ago figure.

Midstream & Marketing: Revenues of $341 million for the reported quarter fell 9% year over year.

UGI Utilities: Revenues of $300 million were down 9% from the year-ago reported figure.

Corporate & Other: This segment incurred a loss of $75 million, narrower than the loss of $76 million in first-quarter fiscal 2019.

Highlights of the Release

The company invested $79 million of its capital in UGI Utilities, up 11% from the prior-year’s comparable period. It expanded the renewable natural gas portfolio by making investment in New Energy One HoldCo LLC, in the reported quarter. Also, on Dec 30, 2020, management announced that the company signed a definitive agreement to acquire Mountaineer Gas Company.

Total interest expenses of $78 million were down 7% from the prior-year figure.

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 a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, 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

UGI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


UGI Corporation (UGI) - free report >>

Published in