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Spire's (SR) Q3 Loss Wider Than Expected, Sales Fall Y/Y
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Spire Inc. (SR - Free Report) reported third-quarter fiscal 2023 loss of 42 cents per share, much wider than the Zacks Consensus Estimate of a loss of 2 cents.
Revenues
Total revenues for the reported quarter were $418.5 million, which missed the Zacks Consensus Estimate of $434 million by 3.7%. The top line decreased 6.6% from $448 million in the year-ago quarter.
Operating expenses totaled $406.5 million, down 0.9% from $410.1 million recorded in the prior-year period.
Operating income came in at $12 million, down 68.3% from $37.9 million in the prior-year quarter.
Net interest expenses increased 59.4% year over year to $46.7 million.
Segmental Performance
Gas Utility: Earnings from this segment were $387.8 million, up 2.8% from the prior-year quarter. The increase primarily resulted from new rates.
Gas Marketing: Earnings from this segment were $23.1 million, down 64% from the prior-year quarter. The lower earnings were because of less favorable conditions and higher demand charges and storage costs.
Midstream: Earnings from this segment were $17.4 million, up 19.2% from the year-ago quarter, based on the optimization of withdrawal commitments at Spire Storage.
Other: Earnings from this segment were $4.3 million, up 4.9% from the year-ago quarter.
Financial Highlights
Cash and cash equivalents as of Jun 30, 2023, were $5.3 million compared with $6.5 million as of Sep 30, 2022.
Long-term debt (less current portion) as of Jun 30, 2023, was $3,553.3 million compared with $2,958.5 million as of Sep 30, 2022.
Net cash provided by operating activities in the first nine months ended June 2023 was $404.1 million compared with $204.6 million in the year-ago period.
Guidance
Spire narrowed its fiscal 2023 net economic earnings guided range to $4.15-$4.25 per share from prior guidance of $4.20-$4.30.
The company expects its 10-year capital investment to be $7 billion. This planned investment is expected to drive annual rate-base growth of 7-8%. Capital expenditure for fiscal 2023 is projected at $700 million.
Atmos Energy (ATO - Free Report) is slated to report fiscal third-quarter results on Aug 2, after market close. The Zacks Consensus Estimate for earnings is pegged at 97 cents per share, implying an improvement of 5.4% from the year-ago figure.
ATO’s long-term (three to five years) earnings growth rate is currently expected to be 7.5%. The consensus estimate for 2023 EPS stands at $6.06, indicating a year-over-year improvement of 8.2%.
Chesapeake Utilities (CPK - Free Report) is slated to report second-quarter results on Aug 3, after market close. The Zacks Consensus Estimate for earnings is pegged at 98 cents per share, indicating a year-over-year increase of 11.4%.
The consensus estimate for CPK’s 2023 EPS stands at $5.32, indicating a year-over-year improvement of 5.6%.
Northwest Natural (NWN - Free Report) is scheduled to report second-quarter results on Aug 3, before market open. The Zacks Consensus Estimate for sales is pegged at $211.65 million, indicating a year-over-year increase of 8.6%.
NWN's long-term earnings growth is currently projected to be 3.7%. The consensus mark for 2023 EPS stands at $2.70, implying a year-over-year improvement of 6.3%.
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Spire's (SR) Q3 Loss Wider Than Expected, Sales Fall Y/Y
Spire Inc. (SR - Free Report) reported third-quarter fiscal 2023 loss of 42 cents per share, much wider than the Zacks Consensus Estimate of a loss of 2 cents.
Revenues
Total revenues for the reported quarter were $418.5 million, which missed the Zacks Consensus Estimate of $434 million by 3.7%. The top line decreased 6.6% from $448 million in the year-ago quarter.
Spire Inc. Price, Consensus and EPS Surprise
Spire Inc. price-consensus-eps-surprise-chart | Spire Inc. Quote
Highlights of the Release
Operating expenses totaled $406.5 million, down 0.9% from $410.1 million recorded in the prior-year period.
Operating income came in at $12 million, down 68.3% from $37.9 million in the prior-year quarter.
Net interest expenses increased 59.4% year over year to $46.7 million.
Segmental Performance
Gas Utility: Earnings from this segment were $387.8 million, up 2.8% from the prior-year quarter. The increase primarily resulted from new rates.
Gas Marketing: Earnings from this segment were $23.1 million, down 64% from the prior-year quarter. The lower earnings were because of less favorable conditions and higher demand charges and storage costs.
Midstream: Earnings from this segment were $17.4 million, up 19.2% from the year-ago quarter, based on the optimization of withdrawal commitments at Spire Storage.
Other: Earnings from this segment were $4.3 million, up 4.9% from the year-ago quarter.
Financial Highlights
Cash and cash equivalents as of Jun 30, 2023, were $5.3 million compared with $6.5 million as of Sep 30, 2022.
Long-term debt (less current portion) as of Jun 30, 2023, was $3,553.3 million compared with $2,958.5 million as of Sep 30, 2022.
Net cash provided by operating activities in the first nine months ended June 2023 was $404.1 million compared with $204.6 million in the year-ago period.
Guidance
Spire narrowed its fiscal 2023 net economic earnings guided range to $4.15-$4.25 per share from prior guidance of $4.20-$4.30.
The company expects its 10-year capital investment to be $7 billion. This planned investment is expected to drive annual rate-base growth of 7-8%. Capital expenditure for fiscal 2023 is projected at $700 million.
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
Atmos Energy (ATO - Free Report) is slated to report fiscal third-quarter results on Aug 2, after market close. The Zacks Consensus Estimate for earnings is pegged at 97 cents per share, implying an improvement of 5.4% from the year-ago figure.
ATO’s long-term (three to five years) earnings growth rate is currently expected to be 7.5%. The consensus estimate for 2023 EPS stands at $6.06, indicating a year-over-year improvement of 8.2%.
Chesapeake Utilities (CPK - Free Report) is slated to report second-quarter results on Aug 3, after market close. The Zacks Consensus Estimate for earnings is pegged at 98 cents per share, indicating a year-over-year increase of 11.4%.
The consensus estimate for CPK’s 2023 EPS stands at $5.32, indicating a year-over-year improvement of 5.6%.
Northwest Natural (NWN - Free Report) is scheduled to report second-quarter results on Aug 3, before market open. The Zacks Consensus Estimate for sales is pegged at $211.65 million, indicating a year-over-year increase of 8.6%.
NWN's long-term earnings growth is currently projected to be 3.7%. The consensus mark for 2023 EPS stands at $2.70, implying a year-over-year improvement of 6.3%.