Spire's Q2 Earnings Lower Than Expected, Revenues Decline Y/Y

Spire Inc. SR reported second-quarter fiscal 2025 earnings of $3.60 per share, which lagged the Zacks Consensus Estimate of $3.70 by 2.7%. However, the company’s bottom line improved 4.4% from $3.45 reported in the year-ago quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)SR’s RevenuesTotal revenues for the reported quarter were $1.05 billion, which missed the Zacks Consensus Estimate of $1.1 billion by 4%. The top line also decreased 6.8% from $1.13 billion in the year-ago quarter.Spire Inc. Price, Consensus and EPS Surprise Spire Inc. price-consensus-eps-surprise-chart | Spire Inc. QuoteHighlights of SR’s Earnings ReleaseOperating expenses totaled $744.9 million, down 10.2% from $829.9 million recorded in the prior-year period.Operating income came in at $306.4 million compared with $298.6 million in the prior-year quarter.Net interest expenses decreased 9.2% year over year to $47.4 million.SR’s Segmental PerformanceGas Utility: The segment reported adjusted earnings of $195.2 million, indicating an improvement of 3.8% from the prior-year quarter’s figure. The improvement reflected an increase in the contribution margin due to higher Spire Missouri Infrastructure System Replacement revenues, as well as Spire Alabama margins due to the annual rate update and Spire Missouri usage net of weather mitigation.Gas Marketing: The segment reported adjusted earnings of $14.8 million, indicating a decline of 4.5% from the prior-year quarter’s reported actuals. The decrease in earnings reflects less volatility in regional basis differences.Midstream: Adjusted earnings from this segment totaled $15.8 million, up a massive 315.8% from the year-ago quarter’s reported number. This increase was driven by higher Spire Storage earnings, reflecting additional capacity and contract renewals at higher rates and asset optimization.Other: This segment reported an adjusted loss of $11.4 million compared with a loss of $10.7 million in the prior-year quarter.SR’s Financial HighlightsCash and cash equivalents as of March 31, 2025 were $15.2 million compared with $4.5 million as of Sept. 30, 2024.Long-term debt (less current portion) as of March 31, 2025 totaled $3.35 billion compared with $3.70 billion as of Sept. 30, 2024.Net cash provided by operating activities in the first six months of fiscal 2025 totaled $453.8 million compared with $559.4 million in the year-ago period.SR’s 2025 GuidanceSpire continues to expect its fiscal 2025 earnings in the range of $4.40-$4.60 per share. The Zacks Consensus Estimate is pegged at $4.50 per share, which is on par with the midpoint of the company’s guided range.SR continues to expect its 10-year capital investment to be $7.4 billion. This planned investment is expected to drive annual rate-based growth of 7-8%.Capital expenditures for fiscal 2025 are expected to be $840 million, up from the previous figure of $790 million.SR’s Zacks RankSpire currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming ReleasesONE Gas, Inc. OGS is slated to report first-quarter 2025 results on May 5, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.85 per share, which indicates year-over-year growth of 5.7%.OGS’ long-term (three to five years) earnings growth rate is 5.6%. The Zacks Consensus Estimate for first-quarter sales is pegged at $803.6 million, which suggests year-over-year growth of 6%.Atmos Energy ATO is slated to report second-quarter 2025 results on May 7, after market close. The Zacks Consensus Estimate for earnings is pegged at $2.89 per share, which implies year-over-year growth of 1.4%.ATO’s long-term earnings growth rate is 7.2%. The Zacks Consensus Estimate for second-quarter sales is pegged at $1.88 billion, which indicates year-over-year growth of 14.4%.UGI Corporation UGI is slated to report second-quarter fiscal 2025 results on May 7, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.80 per share.UGI’s long-term earnings growth rate is 5.2%. The Zacks Consensus Estimate for sales stands at $2.70 billion, which indicates year-over-year growth of 9.3%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atmos Energy Corporation (ATO): Free Stock Analysis Report UGI Corporation (UGI): Free Stock Analysis Report Spire Inc. (SR): Free Stock Analysis Report ONE Gas, Inc. (OGS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks