AmeriGas Partners Earnings: Here’s Why the Stock is Falling Now

AmeriGas Partners LP (NYSE:APU) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.22%.

AmeriGas Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.43 in the quarter versus EPS of $-0.84 in the year-earlier quarter.

Revenue: Rose 1.71% to $581.72 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AmeriGas Partners LP reported adjusted EPS loss of $0.43 per share. By that measure, the company beat the mean analyst estimate of $-0.45. It missed the average revenue estimate of $643.43 million.

Quoting Management: Jerry E. Sheridan, chief executive officer of AmeriGas, said, “Our results for the third quarter truly illustrate the earnings power of the new AmeriGas. The four-fold increase in Adjusted EBITDA versus the same period last year was not only driven by near-normal weather, but also by strong demand in our AmeriGas Cylinder Exchange and National Accounts programs. These growth initiatives, combined with our expanded footprint for retail bulk deliveries, drove a greater-than 10% increase in retail volume over last year. Additionally, we are pleased to announce that we have substantially completed the integration of Heritage Propane and saw the benefits of the acquisition materialize in a significant decrease in operating expenses from the prior-year period.”

Key Stats (on next page)…

Revenue decreased 50.54% from $1.18 billion in the previous quarter. EPS decreased to $-0.43 in the quarter versus EPS of $1.67 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.58 to a loss $0.47. For the current year, the average estimate has moved up from a profit of $2.38 to a profit of $2.43 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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