Just Energy (JE) Q2 Loss Wider than Expected, Sales Miss

Just Energy Group Inc. JE reported adjusted loss of 84 cents per share in the second quarter of fiscal 2017, wider than both the Zacks Consensus Estimate of a loss of 17 cents and the prior-year quarter loss of 47 cents.

Total Revenue

Just Energy reported net sales of $738.9 million (C$992.8 million) in the fiscal second quarter, missing the Zacks Consensus Estimate of $870 million by 15.1%. Quarterly revenues were also down 8.7% from (C$1,087.3 million) on a year-over-year basis.

Highlights of the Release

Administrative expenses increased 15.9% from $29.9 million (C$40.3 million) to $34.8 million (C$46.7 million).

Gross margin improved 9.8% to $136.6 million (C$183.5 million) primarily on the back of continued margin improvement efforts and strong contribution from the U.S. markets.

Base EBITDA grew 24.5% to $42.3 million (C$56.9 million) from the year-ago tally of $34 million (C$45.7 million).

JUST ENERGY GRP Price, Consensus and EPS Surprise

 

JUST ENERGY GRP Price, Consensus and EPS Surprise | JUST ENERGY GRP Quote

Financial Screening

As of Sep 30, 2016, Just Energy had cash and cash equivalents of $88.4 million (C$118.8 million), compared with $95 million (C$127.6 million) as of Mar 31, 2016.

Total debt as of Sep 30, 2016 was $479.3 million(C$644 million), down from $491.6 million (C$660.5 million) as of Mar 31, 2016.

Guidance

Just Energy reiterated its fiscal 2017 base EBITDA guidance of $166–$173.4 million (C$223–C$233 million).

Peer Releases

ONE Gas, Inc.’s OGS third-quarter earnings of 24 cents per share outpaced the Zacks Consensus Estimate of 19 cents by 26.3%.

ONEOK Inc. OKE reported third-quarter 2016 operating earnings of 44 cents per share, outpacing the Zacks Consensus Estimate of 43 cents by 2.3%.

MDU Resources Group Inc. MDU reported third-quarter 2016 operating earnings of 45 cents per share, beating the Zacks Consensus Estimate of 43 cents by 4.7%.

Zacks Rank

Just Energy Group carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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