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Spire (SR) Q4 Loss Wider Than Expected, Sales Fall Y/Y
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Spire Inc. (SR - Free Report) reported a fourth-quarter fiscal 2023 loss of 78 cents per share, much wider than the Zacks Consensus Estimate of a loss of 66 cents. The company reported a loss of 66 cents per share in the year-ago quarter.
Revenues
Total revenues for the reported quarter were $310.4 million, which missed the Zacks Consensus Estimate of $316 million by 1.8%. The top line also decreased 1.2% from $314.2 million in the year-ago quarter.
Operating expenses totaled $314.3 million, up 10.5% from $284.4 million recorded in the prior-year period. Our model projected operating expenses of $300.7 million for the same quarter.
Operating loss came in at $3.9 million against an operating income of $29.8 million in the prior-year quarter.
Net interest expenses increased 40.1% year over year to $48.2 million.
Segmental Performance
Gas Utility: Earnings from this segment totaled $281.6 million, up 13.6% from the prior-year quarter’s figure. The increase primarily resulted from new rates.
Gas Marketing: Earnings from this segment amounted to $21.3 million, down 66.5% from the prior-year quarter’s reported actual.
Midstream: Earnings from this segment totaled $17 million, up 45.3% from the year-ago quarter’s reported number.
Other: This segment’s earnings amounted to $4.3 million, up 4.9% from the year-ago quarter’s level.
Financial Highlights
Cash and cash equivalents as of Sep 30, 2023, were $5.6 million compared with $6.5 million as of Sep 30, 2022.
Long-term debt (less current portion) as of Sep 30, 2023, totaled $3,554 million compared with $2,958.5 million as of Sep 30, 2022.
Net cash provided by operating activities in fiscal 2023 totaled $440.2 million compared with $55 million in the year-ago period.
Guidance
Spire expects 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 $4.28 per share, which is lower than the company’s guided range.
SR expects its 10-year capital investment to be $7.2 billion. This planned investment is expected to drive an annual rate-base growth of 7-8%. Capital expenditures for fiscal 2024 are expected to be $765 million, including $100 million for the Spire Storage West expansion.
Atmos Energy Corporation (ATO - Free Report) posted fourth-quarter fiscal 2023 earnings of 80 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents by 8.1%.
ATO’s long-term (three- to five-year) earnings growth rate is 7.25%. The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) of $6.49 indicates year-over-year growth of 6.4%.
National Fuel Gas Company (NFG - Free Report) reported fourth-quarter fiscal 2023 adjusted operating earnings of 78 cents per share, which missed the Zacks Consensus Estimate of 83 cents by 6%.
NFG’s long-term earnings growth rate is 8.05%. The Zacks Consensus Estimate for NFG’s fiscal 2024 EPS of $5.58 implies year-over-year growth of 7.9%.
Southwest Gas Holdings Inc. (SWX - Free Report) recorded third-quarter 2023 operating earnings of 10 cents per share, which beat the Zacks Consensus Estimate of 2 cents by 400%.
SWX’s long-term earnings growth rate is 5%. The Zacks Consensus Estimate for the company’s 2023 EPS of $3.49 indicates a year-over-year improvement of 16.3%.
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Spire (SR) Q4 Loss Wider Than Expected, Sales Fall Y/Y
Spire Inc. (SR - Free Report) reported a fourth-quarter fiscal 2023 loss of 78 cents per share, much wider than the Zacks Consensus Estimate of a loss of 66 cents. The company reported a loss of 66 cents per share in the year-ago quarter.
Revenues
Total revenues for the reported quarter were $310.4 million, which missed the Zacks Consensus Estimate of $316 million by 1.8%. The top line also decreased 1.2% from $314.2 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 $314.3 million, up 10.5% from $284.4 million recorded in the prior-year period. Our model projected operating expenses of $300.7 million for the same quarter.
Operating loss came in at $3.9 million against an operating income of $29.8 million in the prior-year quarter.
Net interest expenses increased 40.1% year over year to $48.2 million.
Segmental Performance
Gas Utility: Earnings from this segment totaled $281.6 million, up 13.6% from the prior-year quarter’s figure. The increase primarily resulted from new rates.
Gas Marketing: Earnings from this segment amounted to $21.3 million, down 66.5% from the prior-year quarter’s reported actual.
Midstream: Earnings from this segment totaled $17 million, up 45.3% from the year-ago quarter’s reported number.
Other: This segment’s earnings amounted to $4.3 million, up 4.9% from the year-ago quarter’s level.
Financial Highlights
Cash and cash equivalents as of Sep 30, 2023, were $5.6 million compared with $6.5 million as of Sep 30, 2022.
Long-term debt (less current portion) as of Sep 30, 2023, totaled $3,554 million compared with $2,958.5 million as of Sep 30, 2022.
Net cash provided by operating activities in fiscal 2023 totaled $440.2 million compared with $55 million in the year-ago period.
Guidance
Spire expects 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 $4.28 per share, which is lower than the company’s guided range.
SR expects its 10-year capital investment to be $7.2 billion. This planned investment is expected to drive an annual rate-base growth of 7-8%. Capital expenditures for fiscal 2024 are expected to be $765 million, including $100 million for the Spire Storage West expansion.
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.
Other Releases
Atmos Energy Corporation (ATO - Free Report) posted fourth-quarter fiscal 2023 earnings of 80 cents per share, which surpassed the Zacks Consensus Estimate of 74 cents by 8.1%.
ATO’s long-term (three- to five-year) earnings growth rate is 7.25%. The Zacks Consensus Estimate for fiscal 2024 earnings per share (EPS) of $6.49 indicates year-over-year growth of 6.4%.
National Fuel Gas Company (NFG - Free Report) reported fourth-quarter fiscal 2023 adjusted operating earnings of 78 cents per share, which missed the Zacks Consensus Estimate of 83 cents by 6%.
NFG’s long-term earnings growth rate is 8.05%. The Zacks Consensus Estimate for NFG’s fiscal 2024 EPS of $5.58 implies year-over-year growth of 7.9%.
Southwest Gas Holdings Inc. (SWX - Free Report) recorded third-quarter 2023 operating earnings of 10 cents per share, which beat the Zacks Consensus Estimate of 2 cents by 400%.
SWX’s long-term earnings growth rate is 5%. The Zacks Consensus Estimate for the company’s 2023 EPS of $3.49 indicates a year-over-year improvement of 16.3%.