RGC Resources Misses Earnings Estimates, Shares Rise Slightly
RGC Resources Inc. (RGCO) reported quarterly earnings of $0.63 per share, falling short of the Zacks Consensus Estimate of $0.65 per share. This represents a 3.08% earnings surprise and compares to earnings of $0.64 per share a year ago.
Despite missing estimates, RGC Resources shares have gained about 1.4% since the beginning of the year, outperforming the S&P 500's gain of 5.6%. Investors are now wondering what's next for the stock.
Earnings Outlook and Zacks Rank
To understand the future potential of RGC Resources, it's important to analyze the company's earnings outlook. The current consensus EPS estimate is $0.07 on $14 million in revenues for the coming quarter and $1.16 on $86 million in revenues for the current fiscal year.
The Zacks Rank, which harnesses the power of earnings estimate revisions, provides a valuable tool for assessing future performance. Currently, RGC Resources holds a Zacks Rank #3 (Hold), indicating that the shares are expected to perform in line with the market in the near future.
Industry Impact and Upcoming Earnings Release
The performance of RGC Resources can also be influenced by the broader industry outlook. The Zacks Industry Rank for Oil and Gas - Refining and Marketing currently places it in the top 16% of all Zacks industries, suggesting potential for outperformance.
Another company in the same industry, Delek US Holdings (DK), is expected to report earnings for the quarter ended March 2024 on May 7th. The consensus EPS estimate is a loss of $0.56 per share, representing a year-over-year change of -140.9%. Delek US Holdings' revenues are expected to be $3.56 billion, down 9.3% from the year-ago quarter.
Conclusion
While RGC Resources missed earnings estimates, the company's shares have outperformed the market so far this year. The Zacks Rank and industry outlook suggest that the stock may continue to perform in line with the market. Investors should closely monitor upcoming earnings releases and revisions to earnings estimates to gain further insights into the company's future prospects.