How the Wheels Came Off AmeriGas Partners' Bus

Seth Jayson, The Motley Fool
Updated

AmeriGas Partners (NYS: APU) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Dec. 31 (Q1), AmeriGas Partners missed on revenues and whiffed on earnings per share.

Compared to the prior-year quarter, revenue shrank slightly, and earnings per share dropped significantly.

Margins dropped across the board.

Revenue details
 AmeriGas Partners chalked up revenue of $683.8 million. The four analysts polled by S&P Capital IQ predicted a top line of $715.1 million. Sales were 2.3% lower than the prior-year quarter's $700.2 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
 EPS came in at $0.55. The four earnings estimates compiled by S&P Capital IQ anticipated $1.12 per share. GAAP EPS of $0.55 for Q1 were 48% lower than the prior-year quarter's $1.06 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 35.1%, 270 basis points worse than the prior-year quarter. Operating margin was 8.8%, 430 basis points worse than the prior-year quarter. Net margin was 6.2%, 450 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.31 billion. On the bottom line, the average EPS estimate is $2.25.

Next year's average estimate for revenue is $3.13 billion. The average EPS estimate is $2.23.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 193 members out of 211 rating the stock outperform, and 18 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 63 give AmeriGas Partners a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on AmeriGas Partners is hold, with an average price target of $45.43.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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