Global Partners (NYSE:GLP) Releases Quarterly Earnings Results, Misses Expectations By $0.35 EPS

Global Partners (NYSE:GLP) posted its quarterly earnings data on Friday. The energy company reported $1.26 EPS for the quarter, missing the consensus estimate of $1.61 by ($0.35), FiscalAI reports. Global Partners had a return on equity of 30.87% and a net margin of 0.91%. The company had revenue of $6.68 billion during the quarter, compared to analysts’ expectations of $7.41 billion.

Here are the key takeaways from Global Partners’ conference call:

• Profitability and cash flow improved: Third-quarter adjusted EBITDA rose to $122.9 million from $98.8 million a year earlier, while adjusted distributable cash flow increased to $70.3 million from $53.3 million.
• Wholesale strength more than offset retail weakness: Wholesale product margin increased $33.4 million to $111.4 million on more favorable market conditions, while GDSO product margin fell $8.3 million, primarily because of lower gasoline volumes.
• Higher retail fuel prices weighed on customer fuel consumption and gasoline distribution volumes. Management also expects steep backwardation in forward pricing to raise the cost of carrying hedged inventory in future periods.
• Distribution increased for the 20th consecutive quarter to $0.785 per unit, or $3.14 annualized; quarter-end distribution coverage was 2.3 times.
• The company reported leverage of approximately 2.8 times, redeemed its $75 million of Series B preferred units, and extended its credit agreement maturity to October 2031. It raised its 2026 maintenance capital expenditure outlook by $5 million, to $65 million–$75 million.

Global Partners Stock Performance

GLP opened at $44.13 on Friday. The firm has a market cap of $1.50 billion, a P/E ratio of 8.01 and a beta of 1.10. Global Partners has a 1-year low of $39.58 and a 1-year high of $54.29. The company has a 50 day simple moving average of $48.87 and a two-hundred day simple moving average of $47.97. The company has a debt-to-equity ratio of 2.44, a current ratio of 1.19 and a quick ratio of 0.71.

Global Partners Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Monday, November 9th will be issued a dividend of $0.7850 per share. This is an increase from Global Partners’s previous quarterly dividend of $0.78. This represents a $3.14 annualized dividend and a yield of 7.1%. The ex-dividend date of this dividend is Monday, November 9th. Global Partners’s payout ratio is presently 63.54%.

Wall Street Analyst Weigh In

GLP has been the subject of several recent research reports. Wall Street Zen lowered Global Partners from a “strong-buy” rating to a “buy” rating in a report on Saturday. Weiss Ratings upgraded Global Partners from a “buy (b-)” rating to a “buy (b)” rating in a research report on Monday, September 28th. One equities research analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, Global Partners has a consensus rating of “Hold” and an average target price of $46.00.

About Global Partners

Global Partners LP (NYSE: GLP) is an integrated energy company that owns, supplies, stores, transports and markets energy products. The company’s activities include the wholesale distribution of gasoline, diesel, distillates, residual oil, renewable fuels and other petroleum products, as well as the terminaling and storage of these products.

Global Partners serves customers primarily across the northeastern and mid-Atlantic United States. Its wholesale operations supply gasoline stations, commercial and industrial users, utilities, distributors and other energy customers.