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Spire (SR) Q2 Earnings Lag Estimates, Revenues Rise Y/Y
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Spire Inc. (SR - Free Report) reported second-quarter fiscal 2024 earnings of $3.45 per share, which missed the Zacks Consensus Estimate of $3.86 by 10.6%. The company’s bottom line also declined 6.8% from $3.70 reported in the year-ago quarter.
Revenues
Total revenues for the reported quarter were $1.129 billion, which surpassed the Zacks Consensus Estimate of $1.04 billion by 8.6%. The top line also increased 0.5% from $1.123 billion registered in the year-ago quarter.
Total operating expenses were $829.9 million, down 3.8% from $863.1 million recorded in the prior-year period.
Operating income totaled $298.6 million compared with $260.3 million in the prior-year quarter.
Net interest expenses increased 10.6% year over year to $52.2 million.
Segmental Performance
Gas Utility: Revenues from this segment totaled $1.07 billion, up 1.7% from the prior-year quarter’s figure.
Gas Marketing: Revenues from this segment amounted to $46 million, down 24.1% from the prior-year quarter’s reported actuals.
Midstream: Revenues from this segment totaled $21.5 million, up 30.3% from the year-ago quarter’s reported number.
Other: This segment’s revenues amounted to $4.1 million, flat year over year.
Financial Highlights
Cash and cash equivalents as of Mar 31, 2024, were $25.6 million compared with $5.6 million as of Sep 30, 2023.
Long-term debt (less current portion) as of Mar 31, 2024, totaled $3.4 billion compared with $3.6 billion as of Sep 30, 2023.
Net cash provided by operating activities in the first six months of fiscal 2024 totaled $559.4 million compared with $179.9 million in the year-ago period.
Guidance
Spire continues to expect its fiscal 2024 net economic earnings to be in the range of $4.25-$4.45 per share. The Zacks Consensus Estimate for the same is pegged at $4.34 per share, lower than the company’s guided range.
SR projects capital investments worth $7.3 billion through 2033. This planned investment is projected to drive an annual rate-base growth of 7-8%. The company raised its guidance for fiscal 2024 capital expenditures from $765 million to $800 million.
Atmos Energy Corporation (ATO - Free Report) is slated to report second-quarter fiscal 2024 results on May 8, after market close. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $2.60 per share.
ATO’s long-term (three to five years) earnings growth rate is 7%. It delivered an average earnings surprise of 1.2% in the last four quarters.
Southwest Gas (SWX - Free Report) is slated to report first-quarter 2024 results on May 8, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.70 per share.
SWX’s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 114.7% in the last four quarters.
MDU Resources Group (MDU - Free Report) is slated to report first-quarter 2024 results on May 2, before market open. The Zacks Consensus Estimate for full-year 2024 earnings is pegged at $1.50 per share.
MDU’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for full-year 2025 earnings is pegged at $1.60 per share.
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Spire (SR) Q2 Earnings Lag Estimates, Revenues Rise Y/Y
Spire Inc. (SR - Free Report) reported second-quarter fiscal 2024 earnings of $3.45 per share, which missed the Zacks Consensus Estimate of $3.86 by 10.6%. The company’s bottom line also declined 6.8% from $3.70 reported in the year-ago quarter.
Revenues
Total revenues for the reported quarter were $1.129 billion, which surpassed the Zacks Consensus Estimate of $1.04 billion by 8.6%. The top line also increased 0.5% from $1.123 billion registered 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
Total operating expenses were $829.9 million, down 3.8% from $863.1 million recorded in the prior-year period.
Operating income totaled $298.6 million compared with $260.3 million in the prior-year quarter.
Net interest expenses increased 10.6% year over year to $52.2 million.
Segmental Performance
Gas Utility: Revenues from this segment totaled $1.07 billion, up 1.7% from the prior-year quarter’s figure.
Gas Marketing: Revenues from this segment amounted to $46 million, down 24.1% from the prior-year quarter’s reported actuals.
Midstream: Revenues from this segment totaled $21.5 million, up 30.3% from the year-ago quarter’s reported number.
Other: This segment’s revenues amounted to $4.1 million, flat year over year.
Financial Highlights
Cash and cash equivalents as of Mar 31, 2024, were $25.6 million compared with $5.6 million as of Sep 30, 2023.
Long-term debt (less current portion) as of Mar 31, 2024, totaled $3.4 billion compared with $3.6 billion as of Sep 30, 2023.
Net cash provided by operating activities in the first six months of fiscal 2024 totaled $559.4 million compared with $179.9 million in the year-ago period.
Guidance
Spire continues to expect its fiscal 2024 net economic earnings to be in the range of $4.25-$4.45 per share. The Zacks Consensus Estimate for the same is pegged at $4.34 per share, lower than the company’s guided range.
SR projects capital investments worth $7.3 billion through 2033. This planned investment is projected to drive an annual rate-base growth of 7-8%. The company raised its guidance for fiscal 2024 capital expenditures from $765 million to $800 million.
Zacks Rank
Spire currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Atmos Energy Corporation (ATO - Free Report) is slated to report second-quarter fiscal 2024 results on May 8, after market close. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $2.60 per share.
ATO’s long-term (three to five years) earnings growth rate is 7%. It delivered an average earnings surprise of 1.2% in the last four quarters.
Southwest Gas (SWX - Free Report) is slated to report first-quarter 2024 results on May 8, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.70 per share.
SWX’s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 114.7% in the last four quarters.
MDU Resources Group (MDU - Free Report) is slated to report first-quarter 2024 results on May 2, before market open. The Zacks Consensus Estimate for full-year 2024 earnings is pegged at $1.50 per share.
MDU’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for full-year 2025 earnings is pegged at $1.60 per share.