U.S. Markets close in 3 hrs 7 mins

Ferrellgas Partners (FGP) Misses Q2 Earnings Estimates

Zacks Equity Research
1 / 2

URI vs. SSD: Which Stock Should Value Investors Buy Now?

URI vs. SSD: Which Stock Is the Better Value Option?

Ferrellgas Partners LP FGP reported second-quarter fiscal 2018 adjusted earnings of 49 cents per unit, missing the Zacks Consensus Estimate of 61 cents by 19.7%.

Including non-cash charges, the company reported loss of 2 cents in second-quarter fiscal 2018, compared to the year-ago quarter’s earnings of 39 cents.

Total Revenues

In the reported quarter, Ferrellgas Partners’ total revenues were $755.1 million, beating the Zacks Consensus Estimate of $713 million by 5.9%. The top line also improved 30.4% from $579.2 million in the prior-year quarter.

The partnership’s revenues improved primarily on the back of higher sales from all segments — Midstream operations, Propane and other gas liquids and Other. Notably, Propane and other gas liquids sales improved 35.4%, while Midstream operations’ sales rose 21.2%. The Other segment posted a sales increase of 1.2%.

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

In the reported quarter, nearly 310 million gallons of Propane were sold compared with 267.7 million gallons in the prior-year quarter. The company’s customer base increased 1% year over year, following an addition of 8,700 customers.

Operating expenses in the reported quarter were $123.7 million, up 9.96% from $112.5 million in the prior-year quarter.

General and administrative expenses for the quarter under review were $14.9 million, up from $11.4 million in the prior-year quarter.

Interest expenses were $42.7 million in the quarter, up from $36.8 million in the year-ago quarter.

 In the quarter under review, the company completed divesture of two non-core assets.

Financial Position

Ferrellgas Partners’ cash and cash equivalents were $14.2 million as of Jan 31, 2018, compared with $5.8 million as of Jul 31, 2017.

Long-term debt was $1,811.6 million as of Jan 31, 2018, down from $1,995.8 million as of Jul 31, 2017.

Peer Releases

Investors can consider other stocks from the same sector that have already released quarterly results.

ConocoPhillips COP reported fourth-quarter 2017 adjusted earnings of 45 cents per share, in line with the Zacks Consensus Estimate. It sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Apache Corp. APA reported fourth-quarter 2017 adjusted earnings per share of 33 cents that beat the Zacks Consensus Estimate of 21 cents. It carries a Zacks Rank #3 (Hold).

Anadarko Petroleum Corp. APC reported fourth-quarter 2017 earnings of 18 cents per share, beating the Zacks Consensus Estimate of 3 cents. It carries a Zacks Rank #3.

Zacks Rank

Ferrellgas Partners currently carries a Zacks Rank #3.

Don’t Even Think About Buying Bitcoin Until You Read This

The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.

Zacks’ has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 4 crypto-related stocks now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ferrellgas Partners, L.P. (FGP) : Free Stock Analysis Report
 
Apache Corporation (APA) : Free Stock Analysis Report
 
Anadarko Petroleum Corporation (APC) : Free Stock Analysis Report
 
ConocoPhillips (COP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research