Laclede Group Earnings: Here’s Why Investors are Not Happy Now

Laclede Group Inc. (NYSE:LG) delivered a profit 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 0.47%.

Laclede Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 5.26% to $0.36 in the quarter versus EPS of $0.38 in the year-earlier quarter.

Revenue: Decreased 11.53% to $165.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Laclede Group Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.2. It missed the average revenue estimate of $228.86 million.

Quoting Management: “Our third quarter Gas Utility results were up significantly due to cooler weather and recovery of our ongoing investment in upgrading our distribution pipelines, while Gas Marketing earnings declined reflecting low price volatility and narrow basis differentials that exist in the natural gas markets today,” said Suzanne Sitherwood, president and chief executive officer of The Laclede Group. “Meanwhile, we moved closer to finalizing the Missouri Gas Energy (MGE) acquisition. We have obtained Missouri regulatory approval, completed a successful equity offering to finance the acquisition, and remain on track for the integration of MGE,” she added.

Key Stats (on next page)…

Revenue decreased 58.43% from $397.61 million in the previous quarter. EPS decreased 75% from $1.44 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 $0.06 to a loss $0.05. For the current year, the average estimate has moved down from a profit of $2.9 to a profit of $2.69 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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