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Spire (SR) Q2 Earnings Beat Estimates, Revenues Fall Y/Y

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Spire Inc. (SR - Free Report) reported second-quarter fiscal 2022 net economic earnings of $3.42 per share, which surpassed the Zacks Consensus Estimate of $3.08 by 11%. Earnings per share (EPS) were 7.8% lower than the year-ago figure of $3.71.

Revenues

Total revenues came in at $881 million, which lagged the Zacks Consensus Estimate of $895 million by 1.6%. The top line also decreased by 20.3% from $1,105 million in the year-ago quarter.

Spire Inc. Price, Consensus and EPS Surprise

Spire Inc. Price, Consensus and EPS Surprise

Spire Inc. price-consensus-eps-surprise-chart | Spire Inc. Quote

Highlights of the Release

In the second quarter of fiscal 2022, operating expenses of $635.7 million decreased by 25% from the prior-year period’s $847.5 million due to a decrease in natural gas purchased and lower operating expenses.

The operating income was $245.2 million, down 4.7% from $257.4 million in the prior-year quarter.

Net interest expenses increased 6.6% year over year to $27.5 million for the reported quarter.

Financial Highlights

Cash and cash equivalents as of Mar 31, 2022 were $8.3 million compared with $8.1 million on Dec 31, 2021.

The long-term debt (less current portion) as of Mar 31, 2022 was $3,207.3 million compared with $3,206.8 million on Dec 30, 2021.

Spire’s net cash provided by operating activities for the first six months of 2022 was $155.1 million compared with the $159.2 million recorded in the year-ago period.

Guidance

Spire narrowed its EPS guidance for fiscal 2022 to the $3.75-$3.95 per share range compared with the previous guidance of the $3.70-$4.00 band. For the long term, SR expects net economic EPS to grow 5-7%.

Spire reiterated its expectation of the five-year investment plan through fiscal 2026 to be $3.1 billion and the planned investment is expected to drive the annual rate base growth of 7-8%. Capital expenditure for fiscal 2022 is now expected at $540 million, reflecting the deferral of non-operational overhead costs for Spire Missouri into a regulatory asset.

Zacks Rank

Spire currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Algonquin Power & Utilities (AQN - Free Report) is set to release first-quarter 2022 results on May 12 after market close. The Zacks Consensus Estimate for EPS is pegged at 23 cents.

Algonquin Power & Utilities’ long-term (three to five years) earnings growth is projected at 8.1%. The Zacks Consensus Estimate for AQN’s 2022 EPS indicates year-over-year growth of 5.6%.

Pampa Energia S.A (PAM - Free Report) is set to release first-quarter 2022 results on May 12 after market close. The Zacks Consensus Estimate for EPS is pegged at $1.23.

Pampa Energia’s long-term earnings growth is projected at 33%. The Zacks Consensus Estimate for PAM’s 2023 EPS indicates year-over-year growth of 44.9%.

Consolidated Water (CWCO - Free Report) is set to release first-quarter 2022 results on May 13 before market open. The Zacks Consensus Estimate for EPS is pegged at 9 cents.

Consolidated Water’s long-term earnings growth is projected at 8%. The Zacks Consensus Estimate for CWCO’s 2022 EPS indicates year-over-year growth of 130.4%.