It has been about a month since the last earnings report for UGI (UGI). Shares have added about 1.1% 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 Beat, Revenues Up Y/Y
UGI Corporation delivered fourth-quarter fiscal 2018 adjusted earnings of 9 cents per share, comparing favorably with the Zacks Consensus Estimate of a loss of 4 cents. Moreover, the bottom line improved from the prior-year quarter's loss of 2 cents.
Excluding one-time items, the company reported GAAP earnings of 14 cents per share in the reported quarter, significantly ahead of the year-ago quarter's figure of 3 cents.
Revenues of $1,273.1 million in the quarter under review surpassed the Zacks Consensus Estimate of $1,213 million by 5%. Also, the top line improved 14.3% from the year-ago figure of $1,113.9 million.
Revenue growth can primarily be attributable to volume expansion across all segments on account of warmer weather compared with the previous year's temperatures.
Operating earnings in the quarter under discussion were $54.3 million compared with $27.6 million in the year-ago period.
Total interest expenses amounted to $57.3 million, up 3.2% from the prior-year figure.
UGI Corporation issued its EPS view for fiscal year 2019 in the range of $2.75-$2.95 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
Currently, UGI has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, UGI has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.