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Ferrellgas Partners (FGP) Q2 Earnings and Revenues Miss
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Ferrellgas Partners LP reported second-quarter fiscal 2017 adjusted earnings of 39 cents per unit, lagging the Zacks Consensus Estimate of 68 cents by 42.6%. Further, quarterly earnings were lower than the year-ago earnings of 58 cents by 32.8%.
The bottom line deteriorated primarily due to weak contributions from its midstream crude oil logistics segment.
Total Revenue
In the reported quarter, Ferrellgas Partners’ total revenue came in at $579.2 million, missing the Zacks Consensus Estimate of $592 million by 2.2%.
Even on a year-over-year basis, the partnership’s top-line declined 10.8% primarily owing to weak Midstream operations, and its Other segment which plunged 46.4% year over year.
Ferrellgas Partners, L.P. Price, Consensus and EPS Surprise
Operating expenses in the reported quarter were $112.5 million, down 3.3% from the prior-year level.
General and administrative expenses for the quarter under review decreased 5.8% to $11.5 million from $12.1 million in the prior-year period.
Weather in the reported quarter was 14% warmer than normal, however due to the efforts of Ferrellgas Partners’ new management to increase market share, gallons sold during the quarter improved nearly 7% year over year.
Operating income in the reported quarter was $75.2 million, down 19.8% year over year. Despite a higher sales volume, margins in the reported quarter were lower due to customer mix and location.
Interest expenses increased to $36.8 million in the quarter from $34.7 million a year ago, reflecting increased borrowings to fund acquisitions.
Financial Position
Ferrellgas Partners’ cash and cash equivalents were $14.7 million as of Jan 31, 2017, compared with $4.9 million as of Jul 31, 2016.
Long-term debt was $1,966.9 million as of Jan 31, 2017, up from $1,941.3 million as of Jul 31, 2016.
Price Movement
Over the past one year, Ferrellgas Partners has underperformed the Zacks categorized Oil Refining and Marketing MLP industry. During this period, the partnership's units lost 65.31%, compared with the industry's gain of 27.67%.
Peer Releases
Sunoco LP (SUN - Free Report) reported fourth-quarter 2016 earnings of 83 cents per unit, beating the Zacks Consensus Estimate of 28 cents by 196.43%.
Genesis Energy LP (GEL - Free Report) reported fourth-quarter 2016 earnings of 19 cents per unit, lagging the Zacks Consensus Estimate of 32 cents by 40.63%.
AmeriGas Partners LP reported fourth-quarter 2016 earnings of 95 cents per unit, lagging the Zacks Consensus Estimate of $1.03 by 7.77%.
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Ferrellgas Partners (FGP) Q2 Earnings and Revenues Miss
Ferrellgas Partners LP reported second-quarter fiscal 2017 adjusted earnings of 39 cents per unit, lagging the Zacks Consensus Estimate of 68 cents by 42.6%. Further, quarterly earnings were lower than the year-ago earnings of 58 cents by 32.8%.
The bottom line deteriorated primarily due to weak contributions from its midstream crude oil logistics segment.
Total Revenue
In the reported quarter, Ferrellgas Partners’ total revenue came in at $579.2 million, missing the Zacks Consensus Estimate of $592 million by 2.2%.
Even on a year-over-year basis, the partnership’s top-line declined 10.8% primarily owing to weak Midstream operations, and its Other segment which plunged 46.4% year over year.
Ferrellgas Partners, L.P. Price, Consensus and EPS Surprise
Ferrellgas Partners, L.P. Price, Consensus and EPS Surprise | Ferrellgas Partners, L.P. Quote
Highlights of the Release
Operating expenses in the reported quarter were $112.5 million, down 3.3% from the prior-year level.
General and administrative expenses for the quarter under review decreased 5.8% to $11.5 million from $12.1 million in the prior-year period.
Weather in the reported quarter was 14% warmer than normal, however due to the efforts of Ferrellgas Partners’ new management to increase market share, gallons sold during the quarter improved nearly 7% year over year.
Operating income in the reported quarter was $75.2 million, down 19.8% year over year. Despite a higher sales volume, margins in the reported quarter were lower due to customer mix and location.
Interest expenses increased to $36.8 million in the quarter from $34.7 million a year ago, reflecting increased borrowings to fund acquisitions.
Financial Position
Ferrellgas Partners’ cash and cash equivalents were $14.7 million as of Jan 31, 2017, compared with $4.9 million as of Jul 31, 2016.
Long-term debt was $1,966.9 million as of Jan 31, 2017, up from $1,941.3 million as of Jul 31, 2016.
Price Movement
Over the past one year, Ferrellgas Partners has underperformed the Zacks categorized Oil Refining and Marketing MLP industry. During this period, the partnership's units lost 65.31%, compared with the industry's gain of 27.67%.
Peer Releases
Sunoco LP (SUN - Free Report) reported fourth-quarter 2016 earnings of 83 cents per unit, beating the Zacks Consensus Estimate of 28 cents by 196.43%.
Genesis Energy LP (GEL - Free Report) reported fourth-quarter 2016 earnings of 19 cents per unit, lagging the Zacks Consensus Estimate of 32 cents by 40.63%.
AmeriGas Partners LP reported fourth-quarter 2016 earnings of 95 cents per unit, lagging the Zacks Consensus Estimate of $1.03 by 7.77%.
Zacks Rank
Ferrellgas Partners currently 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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Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>