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UGI Corp's (UGI) Earnings Miss Estimates in Fiscal 2019

Zacks Equity Research

UGI Corporation UGI delivered fiscal 2019 adjusted earnings $2.28 per share, which missed the Zacks Consensus Estimate of $2.35 by 3%. The bottom line also declined 16.8% from the prior-year’s figure of $2.74.

The company reported GAAP earnings of $1.41 in fiscal 2019 compared with $4.06 in fiscal 2018.

Revenues

Revenues of $1,150.4 million missed the Zacks Consensus Estimate of $1,204 million by 4.5%. The top line declined 9.6% from the year-ago quarter’s figure of $1,273.1 million.

In fiscal 2019, total revenues amounted to $7,320.4 million down, 4.3% from $7,651.2 million in fiscal 2018.

Segment Revenues

AmeriGas Propane: The segment generated revenues of $411.5 million in the quarter under review, down 11.8% from year-ago quarter’s tally.

UGI International: This segment generated revenues of $391.7 million, down 14.2% from year-ago quarter’s figure.

Midstream & Marketing: Revenues in the segment totaled $246.6 million, down from $264.7 million in the prior-year quarter.

UGI Utilities: This segment generated revenues of $132.4 million in the quarter under review, up 5% from year-ago quarter’s reported figure.

Corporate & Other: This segment incurred a loss of $31.8 million compared with a loss of $41.1 million in the prior-year quarter.

Operational Highlights

Total interest expenses amounted to $76.1 million, up 32.8% from the prior-year quarter’s tally.

The company completed the acquisition of Columbia Midstream Group and the AmeriGas Merger transaction in the quarter under review.

Midstream & Marketing segment completed its fourth expansion of the Auburn system in November 2019, expanded the Texas Creek gathering system in northern Pennsylvania, began construction of the Bethlehem LNG storage and vaporization facility as well as acquired South Jersey Energy Company's natural gas marketing business.

Guidance

The company expects fiscal 2020 adjusted earnings per share in the range of $2.60-$2.90, whose midpoint of $2.75 is lower than the Zacks Consensus Estimate of $3.04.

Zacks Rank

UGI currently has a Zacks Rank #4 (Sell).

 You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

ONE Gas OGS reported third-quarter 2019 earnings of 33 cents per share, which lagged the Zacks Consensus Estimate of 34 cents by 2.94%.

ONEOK Inc. OKE reported third-quarter 2019 operating earnings of 74 cents per share, in line with the Zacks Consensus Estimate.

Atmos Energy Corp. ATO posted fourth-quarter fiscal 2019 earnings of 49 cents per share, which surpassed the Zacks Consensus Estimate of 48 cents by 2.1%.

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