RGCO Earnings Prediction
The chart below shows how RGCO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RGCO sees a +1.31% change in stock price 10 days leading up to the earnings, and a +2.76% change 10 days following the report. On the earnings day itself, the stock moves by -1.18%. This data can give you a slight idea of what to expect for the next quarter's release.
RGCO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
24.42M
-26.63%
95.86%
Gross Margin
47.58%
57.50%
11.93%
Operating Margin
27.24%
63.51%
356.28%
Net Margin
20.56%
110.22%
152.89%
EPS
0.50
51.52%
400.00%
No Data Available
RGCO Earnings Analysis
RGC Resources Inc Corporation (RGCO.O) Earnings Conference Call
Positive
Service Connection Growth: Installed 1.1 main miles and connected 197 new services, an increase from 185 new services in the same quarter last year, indicating strong operational performance.
Gas Volume Increase: Total delivered gas volumes increased by 16% compared to the first quarter of fiscal 2024, driven by a significant rise in consumption from a transportation customer.
Net Income Increase: Net income rose to $5,300,000 or $0.51 per share, up from $5,000,000 or $0.50 per share in the same quarter last year, reflecting improved financial results.
Capital Expenditures Increase: Capital expenditures for the first quarter reached $5,700,000, an 8.4% increase over the previous year, demonstrating ongoing investment in infrastructure.
Earnings Per Share Forecast: Earnings per share forecast for the fiscal year remains strong at a range of $1.18 to $1.25, indicating confidence in continued financial performance.
Negative
Decline in Equity Earnings: Equity earnings from unconsolidated affiliates decreased to $854,000 pretax, down from $1,500,000 in the same quarter a year ago, indicating a significant decline in performance from this segment.
Rising Interest Expenses: Interest expense rose by $143,000 compared to the same quarter last year, attributed to higher average balances on the Roanoke Gas line of credit and increased interest rates on midstream debt, reflecting rising financial costs.
Long-Term Debt Concerns: The current portion of long-term debt stands at $26,200,000, primarily due to a $25,000,000 non-revolving line related to RGC Midstream, indicating potential liquidity concerns as maturity approaches in December 2025.
Marginal Net Income Growth: Despite a net income increase to $5,300,000, the growth was marginal at only 6% compared to $5,000,000 in the same quarter last year, suggesting stagnation in profitability growth.
Economic Uncertainty Impact: The company faces economic uncertainty due to potential inflationary pressures and a cautious Federal Reserve, which may impact future financial performance and operational decisions.
RGCO FAQs
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RGCO Earning Call Sentiment
Earnings call transcript: RGC Resources Q1 2024 sees earnings beat, stock stable
RGCO.O
-0.05%Positive
The earnings call reveals modest positive financial performance with a 6% increase in net income and a 2% EPS rise. However, inflationary pressures, increased interest expenses, and regulatory uncertainties balance the positives. The Q&A indicates stable but cautious sentiment from analysts, with unclear management responses on economic uncertainty. The dividend increase is a positive, but the lack of strong guidance or new partnerships tempers expectations. Overall, the sentiment is neutral, with no strong catalysts for significant stock movement.
