UGI Earnings Preview

Motley Fool Staff
Updated

If UGI (NYS: UGI) misses estimates again it will be the fourth consecutive quarter for the company. The company will unveil its latest earnings on Thursday, April 26. UGI is a domestic and international retail distributor of propane and butane, natural gas and electric service through regulated local distribution utilities.

What analysts say:

  • Buy, sell, or hold?: Half of analysts think investors should stand pat on UGI while the remaining half rate the stock as a buy. Analysts like UGI better than competitor Vectren overall. Zero out of six analysts rate Vectren a buy compared to one of two for UGI. Analysts' rating of UGI has stayed constant from three months prior.

  • Revenue Forecasts: On average, analysts predict $2.76 billion in revenue this quarter. That would represent a rise of 26.6% from the year-ago quarter.

  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $1.24 per share. Estimates range from $1.23 to $1.25.

What our community says:
CAPS All-Stars are strongly supporting the stock, with 95.7% giving it an "outperform" rating. Most of the community concurs with the All-Stars, with 94.9% awarding it a rating of "outperform." UGI has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.


Management:
A year-over-year revenue decrease last quarter snaps a streak of three consecutive quarters of revenue increases.

Now let's look at how efficient management is at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. UGI has seen decreasing net margins year-over-year for the last four quarters. Net margins reflect what percentage of each dollar earned by the company becomes profit. Here are UGI's reported margins for the last four quarters:

Quarter

Q1

Q4

Q3

Q2

Gross Margin

34.8%

(88.6%)

33.9%

34.7%

Net Margin

5.2%

(2.2%)

(0.7%)

6.9%

For all our UGI-specific analysis, including earnings and beyond, add UGI to My Watchlist.

At the time thisarticle was published Motley Fool newsletter services have recommended buying shares of UGI.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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