The 10-second takeaway
For the quarter ended Jan. 31 (Q2), Ferrellgas Partners beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Ferrellgas Partners reported revenue of $658.9 million. The four analysts polled by S&P Capital IQ predicted revenue of $633.5 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $829.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.74. The seven earnings estimates compiled by S&P Capital IQ forecast $0.81 per share. Non-GAAP EPS of $0.74 for Q2 were 57% higher than the prior-year quarter's $0.47 per share. GAAP EPS of $0.70 for Q2 were 49% higher than the prior-year quarter's $0.47 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.7%, much better than the prior-year quarter. Operating margin was 12.8%, 530 basis points better than the prior-year quarter. Net margin was 8.4%, 410 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $530.2 million. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $1.90 billion. The average EPS estimate is $0.63.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 124 members out of 174 rating the stock outperform, and 50 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Ferrellgas Partners a green thumbs-up, and 16 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ferrellgas Partners is underperform, with an average price target of $14.08.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. 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.