Earnings Outlook For UGI
UGI UGI is gearing up to announce its quarterly earnings on Thursday, 2024-11-21. Here’s a quick overview of what investors should know before the release.
Analysts are estimating that UGI will report an earnings per share (EPS) of $-0.29.
Investors in UGI are eagerly awaiting the company’s announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It’s worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Historical Earnings Performance
During the last quarter, the company reported an EPS beat by $0.12, leading to a 3.86% drop in the share price on the subsequent day.
Here’s a look at UGI’s past performance and the resulting price change:
| Quarter | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|
| EPS Estimate | -0.06 | 1.64 | 1.05 | -0.06 |
| EPS Actual | 0.06 | 1.97 | 1.20 | 0.03 |
| Price Change % | -4.0% | -6.0% | 13.0% | 4.0% |
Performance of UGI Shares
Shares of UGI were trading at $24.37 as of November 19. Over the last 52-week period, shares are up 10.62%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Insights on UGI
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on UGI.
A total of 1 analyst ratings have been received for UGI, with the consensus rating being Neutral. The average one-year price target stands at $27.0, suggesting a potential 10.79% upside.
Analyzing Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of New Jersey Resources, National Fuel Gas and Southwest Gas Hldgs, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- New Jersey Resources received a Neutral consensus from analysts, with an average 1-year price target of $49.0, implying a potential 101.07% upside.
- The prevailing sentiment among analysts is an Neutral trajectory for National Fuel Gas, with an average 1-year price target of $63.0, implying a potential 158.51% upside.
- Southwest Gas Hldgs is maintaining an Neutral status according to analysts, with an average 1-year price target of $78.0, indicating a potential 220.07% upside.
Overview of Peer Analysis
In the peer analysis summary, key metrics for New Jersey Resources, National Fuel Gas and Southwest Gas Hldgs are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| UGI | Neutral | -16.82% | $741M | -1.03% |
| New Jersey Resources | Neutral | 4.38% | $55.19M | -0.54% |
| National Fuel Gas | Neutral | -10.87% | $170.46M | -5.62% |
| Southwest Gas Hldgs | Neutral | -7.72% | $191.13M | 0.01% |
Key Takeaway:
UGI is positioned in the middle among its peers for revenue growth, with a negative growth rate. It ranks at the bottom for gross profit, indicating lower profitability compared to others. In terms of return on equity, UGI is also at the bottom, showing a negative percentage. Overall, UGI’s performance is relatively weaker compared to its peers in these key financial metrics.
About UGI
UGI Corp is an American holding company that, through its subsidiaries, is involved in the transport and marketing of energy and related services. Its segments include AmeriGas Propane, UGI International, Midstream & Marketing and UGI Utilities. The AmeriGas Propane segment consists of the propane distribution business. The UGI International segment consists of LPG distribution businesses. The Midstream & Marketing segment consists of energy-related businesses. The UGI Utilities segment consists of the regulated natural gas and electric distribution. The company derives a majority of its revenue from the UGI International segment.
Unraveling the Financial Story of UGI
Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: UGI’s revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -16.82%. This indicates a decrease in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Utilities sector.
Net Margin: The company’s net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -3.48%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): UGI’s ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -1.03%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): UGI’s ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -0.31%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: UGI’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.48, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
To track all earnings releases for UGI visit their earnings calendar on our site.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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