Suburban Propane Partners (NYSE:SPH) Announces Earnings Results, Misses Expectations By $0.11 EPS

Suburban Propane Partners (NYSE:SPH) issued its quarterly earnings results on Thursday. The energy company reported ($0.26) EPS for the quarter, missing analysts’ consensus estimates of ($0.15) by ($0.11), FiscalAI reports. The business had revenue of $261.38 million for the quarter, compared to the consensus estimate of $255.00 million. Suburban Propane Partners had a net margin of 9.37% and a return on equity of 18.97%.

Here are the key takeaways from Suburban Propane Partners’ conference call:

• Third-quarter results weakened year over year: Adjusted EBITDA fell to $18 million from $27 million, while the adjusted net loss widened to $17.7 million, or $0.27 per common unit, from $10.8 million, or $0.17 per unit.
• Retail propane volumes declined 1.8% to 70.6 million gallons, primarily because April temperatures were unusually warm; total gross margin decreased 2.4% and operating and G&A expenses rose 3.8%.
• RNG growth initiatives are nearing completion: The Upstate New York anaerobic digester is now online, the Columbus, Ohio facility is expected to begin pipeline-quality RNG injections in the fourth quarter, and annual injection is projected to reach 750,000–800,000 MMBtus in fiscal 2027.
• Management cited improving environmental credit prices and regulatory support as potential RNG tailwinds, while the partnership reduced revolver borrowings by $36.2 million during the quarter and maintained strong trailing-12-month distribution coverage of 2.07 times.

Suburban Propane Partners Trading Up 0.1%

SPH stock traded up $0.02 on Friday, reaching $17.76. The company’s stock had a trading volume of 151,505 shares, compared to its average volume of 159,967. The firm has a market cap of $1.18 billion, a PE ratio of 9.06 and a beta of 0.40. The business has a fifty day simple moving average of $18.10 and a two-hundred day simple moving average of $19.32. Suburban Propane Partners has a 12-month low of $16.53 and a 12-month high of $20.80. The company has a debt-to-equity ratio of 1.69, a quick ratio of 0.82 and a current ratio of 1.08.

Suburban Propane Partners Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 11th. Investors of record on Tuesday, August 4th will be paid a $0.325 dividend. The ex-dividend date of this dividend is Tuesday, August 4th. This represents a $1.30 dividend on an annualized basis and a yield of 7.3%. Suburban Propane Partners’s dividend payout ratio (DPR) is presently 65.33%.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the stock. Truvestments Capital LLC bought a new position in Suburban Propane Partners in the fourth quarter worth $37,000. Triumph Capital Management bought a new position in shares of Suburban Propane Partners in the 3rd quarter worth about $50,000. Advisory Services Network LLC purchased a new position in Suburban Propane Partners during the 3rd quarter valued at about $62,000. Northwestern Mutual Wealth Management Co. boosted its stake in Suburban Propane Partners by 669.5% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 4,671 shares of the energy company’s stock worth $87,000 after acquiring an additional 4,064 shares in the last quarter. Finally, Steward Partners Investment Advisory LLC grew its holdings in Suburban Propane Partners by 11.8% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 7,175 shares of the energy company’s stock worth $133,000 after purchasing an additional 757 shares during the period. 30.94% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities analysts recently commented on the stock. Wall Street Zen cut shares of Suburban Propane Partners from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Weiss Ratings cut Suburban Propane Partners from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday. Finally, Zacks Research upgraded Suburban Propane Partners from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 10th. Two research analysts have rated the stock with a Strong Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, Suburban Propane Partners currently has a consensus rating of “Buy”.

About Suburban Propane Partners

Suburban Propane Partners L.P. (NYSE: SPH) is a publicly traded master limited partnership headquartered in Whippany, New Jersey, that provides propane and related energy services to residential, commercial, industrial and agricultural customers. As one of the largest propane retailers in the United States, the company delivers propane gas, heating oil, diesel fuel and natural gas throughout its service territories. In addition to fuel distribution, Suburban Propane offers HVAC installation, maintenance and repair services, as well as safety inspections and equipment leasing to support customers’ energy needs.

The company’s core business centers on the delivery of propane for space and water heating, cooking and agricultural applications.