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Spire (SR) Down 3.7% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Spire (SR - Free Report) . Shares have lost about 3.7% 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 drivers.
Spire's Q3 Loss Wider Than Expected, Sales Fall Y/Y
Spire Inc. 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 16.85% due to these changes.
VGM Scores
At this time, Spire has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, 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 B. 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 these revisions looks promising. Notably, Spire has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Spire (SR) Down 3.7% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Spire (SR - Free Report) . Shares have lost about 3.7% 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 drivers.
Spire's Q3 Loss Wider Than Expected, Sales Fall Y/Y
Spire Inc. 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
The consensus estimate has shifted 16.85% due to these changes.
VGM Scores
At this time, Spire has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Charting a somewhat similar path, 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 B. 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 these revisions looks promising. Notably, Spire has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.