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Why Is UGI (UGI) Up 3% Since Last Earnings Report?

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It has been about a month since the last earnings report for UGI (UGI - Free Report) . Shares have added about 3% 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 its most recent earnings report in order to get a better handle on the important drivers.

UGI Corporation Q3 Earnings Miss, Revenues Beat Estimates

UGI Corporation (UGI - Free Report) delivered third-quarter fiscal 2018 adjusted earnings of 9 cents per share, missing the Zacks Consensus Estimate of 13 cents by 30.8%. The bottom line is at breakeven with the prior-year quarter’s earnings.

On a GAAP basis, the company reported earnings of 30 cents per share against the loss of 11 cents in the year-ago quarter.

Revenues

Revenues of $1,440.9 million in the quarter under review beat the Zacks Consensus Estimate of $1,265 million by 13.5%. Also, the top line improved 24.9% from the year-ago figure of $1,153.5 million.

Revenue growth can primarily be attributable to volume expansion across all segments on account of colder weather than the previous year’s temperatures coupled with benefits from recent acquisitions and projects consistently driving earnings.

Operational Highlights

Operating earnings in the quarter under discussion were $28.5 million versus $2.8 million loss in the year-earlier period.

Total interest expenses amounted to $56.5 million, down 0.5% from the prior-year quarter’s figure.

Guidance

UGI Corporation reaffirms its EPS guidance for fiscal 2018 in the range of $2.7-$2.8 per share, above the earlier projection of $2.45-$2.65.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. The consensus estimate has shifted -450% due to these changes.

VGM Scores

Currently, UGI has an average Growth Score of C, however its Momentum Score is doing a bit 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 top 40% 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.

Based on our scores, the stock is equally suitable for value and momentum investors while growth investors may want to look elsewhere.

Outlook

UGI has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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