Yahoo Finance Spire (SR) Down 2.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Spire (SR). Shares have lost about 2.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Spire due for a breakout? 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 Q2 Earnings Lag Estimates, Revenues Rise Y/Y
Spire Inc. 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 11.48% due to these changes.
VGM Scores
At this time, Spire has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions 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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Spire Inc. (SR) : Free Stock Analysis Report
