A month has gone by since the last earnings report for Spire (SR - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Spire due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Spire's Q1 Earnings Miss, Revenues Surpass Estimates
Spire Inc. reported first-quarter fiscal 2022 net economic earnings of $1.14 per share, which missed the Zacks Consensus Estimate of $1.31 by 13%. Earnings per share were 19.7% lower than the year-ago figure of $1.42.
Revenues
Total revenues came in at $555.4 million, which beat the Zacks Consensus Estimate of $509 million by 9.2%. The top line also improved 8.3% from $512.6 million in the year-ago quarter.
Highlights of the Release
For the quarter under review, operating expenses of $460.1 million increased 21.2% from the prior-year period’s $379.7 million.
Operating income was $95.3 million, down 28.3% from $132.9 million in the prior-year quarter.
Net interest expenses increased 11.3% year over year to $28.6 million for the reported quarter.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2021 were $8.1 million compared with $4.3 million on Sep 30, 2021.
Long-term debt (less current portion) as of Dec 31, 2021 was $3,206.8 million compared with $2,939.1 million on Sep 30, 2021.
Spire’s net cash (used)/provided by operating activities in first-quarter fiscal 2022 was ($229.9 million) compared with $7.6 million in fiscal first-quarter 2021.
Guidance
Spire reiterated its earnings per share guidance for fiscal 2022 within $3.70-$4. For the long term, SR expects net economic earnings per share to grow 5-7%.
SR also expects its five-year investment plan through fiscal 2026 to be $3.1 billion and aims to invest $570 million in fiscal 2022. This planned investment is expected to drive annual rate base growth of 7-8%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Spire has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Spire has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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A month has gone by since the last earnings report for Spire (SR - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Spire due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Spire's Q1 Earnings Miss, Revenues Surpass Estimates
Spire Inc. reported first-quarter fiscal 2022 net economic earnings of $1.14 per share, which missed the Zacks Consensus Estimate of $1.31 by 13%. Earnings per share were 19.7% lower than the year-ago figure of $1.42.
Revenues
Total revenues came in at $555.4 million, which beat the Zacks Consensus Estimate of $509 million by 9.2%. The top line also improved 8.3% from $512.6 million in the year-ago quarter.
Highlights of the Release
For the quarter under review, operating expenses of $460.1 million increased 21.2% from the prior-year period’s $379.7 million.
Operating income was $95.3 million, down 28.3% from $132.9 million in the prior-year quarter.
Net interest expenses increased 11.3% year over year to $28.6 million for the reported quarter.
Financial Highlights
Cash and cash equivalents as of Dec 31, 2021 were $8.1 million compared with $4.3 million on Sep 30, 2021.
Long-term debt (less current portion) as of Dec 31, 2021 was $3,206.8 million compared with $2,939.1 million on Sep 30, 2021.
Spire’s net cash (used)/provided by operating activities in first-quarter fiscal 2022 was ($229.9 million) compared with $7.6 million in fiscal first-quarter 2021.
Guidance
Spire reiterated its earnings per share guidance for fiscal 2022 within $3.70-$4. For the long term, SR expects net economic earnings per share to grow 5-7%.
SR also expects its five-year investment plan through fiscal 2026 to be $3.1 billion and aims to invest $570 million in fiscal 2022. This planned investment is expected to drive annual rate base growth of 7-8%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
At this time, Spire has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Spire has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
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