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

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

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%

Shares of SPH stock traded up $0.02 on Friday, reaching $17.76. 151,505 shares of the stock were exchanged, compared to its average volume of 159,967. The stock has a market cap of $1.18 billion, a P/E ratio of 9.06 and a beta of 0.40. The company has a quick ratio of 0.82, a current ratio of 1.08 and a debt-to-equity ratio of 1.69. The firm has a 50 day moving average of $18.10 and a two-hundred day moving average of $19.32. Suburban Propane Partners has a 1-year low of $16.53 and a 1-year high of $20.80.

Suburban Propane Partners Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Tuesday, August 4th will be issued a dividend of $0.325 per share. This represents a $1.30 dividend on an annualized basis and a dividend yield of 7.3%. The ex-dividend date is Tuesday, August 4th. Suburban Propane Partners’s dividend payout ratio is presently 65.33%.

Institutional Investors Weigh In On Suburban Propane Partners

A number of institutional investors have recently added to or reduced their stakes in the company. Truvestments Capital LLC acquired a new stake in Suburban Propane Partners during the fourth quarter worth about $37,000. Triumph Capital Management purchased a new stake in shares of Suburban Propane Partners during the 3rd quarter worth about $50,000. Advisory Services Network LLC purchased a new stake in shares of Suburban Propane Partners during the 3rd quarter worth about $62,000. Northwestern Mutual Wealth Management Co. increased its position in Suburban Propane Partners by 669.5% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 4,671 shares of the energy company’s stock worth $87,000 after purchasing an additional 4,064 shares in the last quarter. Finally, Steward Partners Investment Advisory LLC raised 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 valued at $133,000 after buying an additional 757 shares during the period. Hedge funds and other institutional investors own 30.94% of the company’s stock.

Wall Street Analysts Forecast Growth

SPH has been the subject of several recent research reports. Weiss Ratings downgraded Suburban Propane Partners from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday. Zacks Research upgraded Suburban Propane Partners from a “hold” rating to a “strong-buy” rating in a research report on Friday, July 10th. Finally, Wall Street Zen downgraded shares of Suburban Propane Partners from a “buy” rating to a “hold” rating in a research note on Saturday, August 1st. Two investment analysts have rated the stock with a Strong Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Buy”.

Suburban Propane Partners Company Profile

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.