UGI Earnings: Here’s Why Shares are Up Now

UGI Corp. (NYSE:UGI) 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 up 0.17%.

UGI Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.13 in the quarter versus EPS of $-0.03 in the year-earlier quarter.

Revenue: Rose 7.42% to $1.37 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: UGI Corp. reported adjusted EPS income of $0.13 per share. By that measure, the company beat the mean analyst estimate of $0.08. It missed the average revenue estimate of $1.39 billion.

Quoting Management: John Walsh, president and chief executive officer of UGI, said, “I am pleased to report strong third quarter results, which represent a marked improvement over last year’s third quarter. The improved performance illustrates the strength and diversified earnings power of UGI. At AmeriGas, the benefits of the Heritage Propane acquisition and strong growth in our AmeriGas Cylinder Exchange and National Accounts programs helped drive performance. UGI International also saw substantially improved results due to colder weather and falling LPG prices. Although higher operating expenses reduced Gas Utility’s results in the quarter, this business remains on pace to convert a record number of residential and commercial customers from heating oil to clean-burning, affordable natural gas. Meanwhile, Midstream and Marketing saw improved performance driven by electric generation and midstream services and its construction of the Auburn II pipeline is on schedule with a target in-service date of early fiscal 2014.”

Key Stats (on next page)…

Revenue decreased 45.92% from $2.54 billion in the previous quarter. EPS decreased 91.39% from $1.51 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 $0.02 to a profit $0.02. For the current year, the average estimate has moved down from a profit of $2.48 to a profit of $2.46 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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