It has been about a month since the last earnings report for UGI (UGI). Shares have added about 2.6% 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 the most recent earnings report in order to get a better handle on the important drivers.
UGI Stock Trades Higher as Its Earnings Surpass Estimates in Q1
UGI Corporation has reported first-quarter fiscal 2025 operating earnings of $1.37 per share, which surpassed the Zacks Consensus Estimate of $1.21 by 13.2%. In the year-ago quarter, the company reported earnings of $1.20 per share.
GAAP earnings per share in the fiscal first quarter were $1.74 compared with 44 cents in the year-ago quarter.
Total Revenues of UGI
Revenues of $2.03 billion missed the Zacks Consensus Estimate of $2.15 billion by 5.5%. The top line also declined 4.3% from the year-ago quarter’s $2.12 billion.
Highlights of UGI’s Q1 Release
UGI invested nearly $236 million in first-quarter fiscal 2025, with 84% invested in the natural gas businesses.
The company continues to add customers and added more than 4,000 customers at the Utilities in the fiscal first quarter.
In the reported quarter, the company achieved substantial completion on several RNG facilities, namely MBL Bioenergy-Brookings and Lakeside, and Cayuga-Bergen Farms. At full production, these facilities will have the capacity to produce more than 650 Mmcf of RNG from dairy feedstock.
The company’s interest expenses were $102 million compared with $100 million in the year-ago quarter.
UGI’s earnings before interest expense and income tax1 ("EBIT") for first-quarter fiscal 2025 were nearly $519 million compared with $220 million in the prior year.
UGI’s Segmental Results
AmeriGas Propane: EBIT of $71 million in first-quarter fiscal 2025 was up 4.2% from the year-ago level.
UGI International: EBIT of $110 million in first-quarter fiscal 2025 was down 5.9% from the year-ago level.
Midstream & Marketing: EBIT of $95 million in first-quarter fiscal 2025 was down 6.9% from the year-ago level.
UGI Utilities: EBIT of $141 million in first-quarter fiscal 2025 was up 4.4% year over year.
UGI's Guidance
UGI reiterates fiscal 2025 adjusted earnings at $2.75-$3.05 per share. The Zacks Consensus Estimate is pegged at $3 per share, which is higher than $2.90 — the mid-point of the company’s guided range.
The company plans to invest $800-$900 million in fiscal 2025 to strengthen its operations.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, UGI has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile 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.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, UGI has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
