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Ferrellgas Partners LP (FGP) Q1 Loss Wider Than Expected

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Ferrellgas Partners LP  reported first-quarter fiscal 2018 adjusted loss of 49 cents per unit, significantly wider than the Zacks Consensus Estimate loss of 28 cents. Quarterly loss was also wider than the year-ago loss of 44 cents.

Total Revenues

In the reported quarter, Ferrellgas Partners’ total revenues came in at $454.7 million, beating the Zacks Consensus Estimate of $436 million by 4.2%. Moreover, the top line improved 19.8% from $379.5 million reported a year ago.

The partnership’s top line increased primarily due to higher sales from all the reported segments namely midstream operations, propane and other gas liquids, and others. Notably, Propane and other gas liquids sales improved by 24.9%, Midstream operations’ sales improved by 11.9% and the Other segment’s sales grew by 6.9% respectively.

Highlights of the Release

In the reported quarter, nearly 173 million gallons of Propane were sold compared with 163.2 million gallons in the prior-year quarter.

Operating expenses in the reported quarter were $110.5 million, up 5.2% from the prior-year level.

General and administrative expenses for the quarter under review increased to $13.2 million from $12.5 million in the prior-year period.

Interest expenses increased to $40.8 million in the quarter from $35.4 million a year ago, reflecting increased borrowings to fund acquisitions.

Financial Position

Ferrellgas Partners’ cash and cash equivalents were $7.1 million as of Oct 31, 2017, compared with $5.8 million as of Jul 31, 2017.

Long-term debt was $1,812.2 million as of Oct 31, 2017, down from $1,995.8 million as of Jul 31, 2017.

Ferrellgas Partners, L.P. Price, Consensus and EPS Surprise

Peer Releases

Genesis Energy LP (GEL - Free Report) reported third-quarter 2017 earnings of 22 cents per unit, beating the Zacks Consensus Estimate of 13 cents by 69.2%.

Global Partners LP (GLP - Free Report) reported third-quarter 2017 earnings of 44 cents per unit, beating the Zacks Consensus Estimate of 25 cents by 76%.

Sunoco LP (SUN - Free Report) reported third-quarter 2017 earnings of $1.02 per unit, beating the Zacks Consensus Estimate of 35 cents by 191.4%.

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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