Zacks Investment Research downgraded
Suburban Propane Partners, L.P.
) to a Zacks Rank #5 (Strong sell) on Aug 29, 2013.
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SUBURB PROPANE (SPH): Free Stock Analysis
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Why the Downgrade?
Suburban Propane reported net loss per share of 77 cents for the
fiscal third quarter of 2013 (ended Jun 29, 2013) on Aug 8, 2013.
The results were unfavorable compared with loss per share of 26
cents reported in the year-ago quarter and the Zacks Consensus
Estimate of a loss per share of 57 cents.
Revenue in the quarter increased 61.9% year over year as Suburban
Propane reported healthy year-over-year increases in all its
business segments including Propane, Fuel oil and refined fuels,
Natural gas and electricity, and Others.
Talking of expenses and margins, cost of products sold in the
quarter represented 51.0% of total revenue, an increase from
49.4% reported in the year-ago quarter. Operating loss in the
quarter increased manifold as compared with the year ago quarter.
In the last 30 days, the Zacks Consensus Estimate for Suburban
Propane has gone down by 11.3% to $1.73 for fiscal year 2013 and
has declined 11.7% to $2.50 for fiscal year 2014.
Also, Suburban Propane had a negative earnings surprise in all
the trailing four quarters, with the average being 17.1%.
Additionally, we have an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of 2.3% for the fiscal fourth quarter 2013, 4.6% for fiscal
2013 and 4.8% for fiscal 2014.
Other Stocks to Consider
Suburban Propane Partners is a master limited partnership,
engaged in the retail marketing and distribution of propane, fuel
oil, and refined fuels. The company has a market capitalization
of $2.8 billion.
Other stocks to watch out for in the industry are
AGL Resources Inc.
Atmos Energy Corporation
Piedmont Natural Gas Co. Inc.
), each with a Zacks Rank #2 (Buy).