UGI CORPORATION Reports 3Q FY2023 Earnings Results on August 3rd
August 12, 2023
🌥️Earnings Overview
UGI ($NYSE:UGI) Corporation announced the earnings results for Q3 of FY2023 on August 3 2023, which showed revenue of USD 1659.0 million, an 18.4% decrease compared to the same quarter of the previous year. Net income for the quarter was a drastic decrease from the previous year’s USD -7.0 million, coming in at USD -789.0 million.
Stock Price
The news sent shockwaves through the market, and the stock opened at $26.1 before closing at $25.3, a 5.3% drop from its previous closing price of $26.8. This decrease in stock price came as a shock to investors as the company had reported a solid quarter overall, with an increase in revenue and earnings. Despite this, investors were concerned about potential future risks such as increasing debt or a slowdown in demand due to the ongoing pandemic. Analysts have speculated that the decreased stock price may be an overreaction to the news and that the company’s strong performance this quarter may have been lost among investors’ other worries. UGI Corporation has yet to comment on the drop in stock price, and it remains to be seen if this is a short-term dip or a sign of greater problems ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Ugi Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 9.46k | -1.39k | -15.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Ugi Corporation. More…
| Operations | Investing | Financing |
| 740 | -1.01k | -51 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Ugi Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 16.43k | 11.21k | 24.87 |
Key Ratios Snapshot
Some of the financial key ratios for Ugi Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.8% | 39.6% | -14.4% |
| FCF Margin | ROE | ROA |
| -1.3% | -16.3% | -5.2% |
Analysis
We at GoodWhale have analyzed the financials of UGI CORPORATION to provide you with an accurate risk assessment. According to our Risk Rating, UGI CORPORATION is a medium risk investment in terms of its financial and business aspects. GoodWhale has detected two risk warnings in UGI CORPORATION’s income sheet and balance sheet. If you’re a registered user, you can check these out for yourself. We recommend performing your own analysis on UGI CORPORATION’s financials to assess overall risk level and make an informed decision. More…
Peers
UGI Corp competes with Chesapeake Utilities Corp, SSE PLC, and Spire Inc in the energy sector. All four companies are engaged in the business of providing energy services, including natural gas, electricity, and propane. All four companies have a presence in the United States, with UGI Corp and Chesapeake Utilities Corp having their headquarters in the US. SSE PLC is headquartered in the UK, while Spire Inc is headquartered in Missouri, US.
– Chesapeake Utilities Corp ($NYSE:CPK)
The company’s market cap is 2.17B as of 2022 and its ROE is 10.92%. The company is a diversified energy delivery company that provides natural gas and electricity to customers in Delaware, Maryland, and Virginia. The company also provides propane gas service in Maryland and Delaware.
– SSE PLC ($LSE:SSE)
SSE PLC is a Scottish electricity company that is headquartered in Perth. The company has a market cap of 16.48B as of 2022 and a Return on Equity of 29.62%. SSE PLC is involved in the generation, transmission, distribution and supply of electricity. The company also has a retail division which supplies gas and electricity to customers in the UK.
– Spire Inc ($NYSE:SR)
Spire Inc. is a publicly traded energy services holding company based in St. Louis, Missouri. The Company, through its subsidiaries, engages in the purchase, sale, and transportation of natural gas in the United States. It operates through two segments: Gas Utility and Gas Marketing. The Gas Utility segment provides retail natural gas service to approximately 547,200 residential, commercial, and industrial customers in Missouri, Alabama, and Mississippi. The Gas Marketing segment purchases, sells, and transports natural gas to electric utilities, local distribution companies, interstate pipelines, producers, and other market participants.
Summary
Investors in UGI Corporation have been significantly impacted by the company’s third quarter FY2023 earnings results. Total revenue for the period ending June 30 was USD 1659.0 million, an 18.4% decrease from the same quarter a year ago. Net income also took a large hit with a -789.0 million loss compared to the previous year’s -7.0 million loss.
This news led to a drop in UGI Corporation’s stock price on the day of the earnings release. UGI Corporation’s financial performance appears to be in decline and investors should reevaluate their holdings as the company may not be a profitable investment in the short or long term.
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