Suburban Propane Partners (NYSE:SPH) Issues Earnings Results

Suburban Propane Partners (NYSE:SPH) announced its quarterly earnings results on Thursday. The energy company reported $2.06 EPS for the quarter, beating analysts’ consensus estimates of $1.74 by $0.32, FiscalAI reports. The company had revenue of $551.21 million for the quarter, compared to analysts’ expectations of $575.00 million. Suburban Propane Partners had a net margin of 9.57% and a return on equity of 20.39%.

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

• Adjusted EBITDA of $175.3 million in 2Q was essentially flat year-over-year, with YTD adjusted EBITDA of $258.7 million (up 3.4%), and the board declared a quarterly distribution of $0.325 per unit with trailing 12?month coverage of 2.2x.
• The RNG platform is gaining traction — average daily D3 RNG injections rose ~16% sequentially and >12% year-over-year, the partnership recognized $3.5 million of PTCs for Stanfield, and two RNG projects (Upstate NY and Columbus) are on schedule to add ~200,000 MMBTUs annually in H2.
• Weather was a tale of two regions (east volumes +3%, west volumes ?10%), leaving retail gallons sold roughly flat at 161.6 million, while U.S. propane inventories are elevated at 77 million barrels (75% higher YoY, 47% above the five?year average), contributing to a 23% YoY decline in average wholesale prices and continued price volatility.
• Management used excess operating cash to repay $64.3 million of revolver borrowings, improving trailing 12?month leverage to 4.34x, and maintains ample revolver capacity and disciplined capex (RNG growth capex of $90 million YTD) to support strategic growth.

Suburban Propane Partners Stock Performance

Shares of Suburban Propane Partners stock traded up $0.01 during midday trading on Friday, hitting $19.61. The company had a trading volume of 162,019 shares, compared to its average volume of 120,886. The stock has a market cap of $1.30 billion, a price-to-earnings ratio of 9.86 and a beta of 0.42. The company has a quick ratio of 0.61, a current ratio of 0.87 and a debt-to-equity ratio of 2.11. The company has a fifty day simple moving average of $19.95 and a 200 day simple moving average of $19.44. Suburban Propane Partners has a 12-month low of $17.30 and a 12-month high of $20.80.

Suburban Propane Partners Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 12th. Investors of record on Tuesday, May 5th will be given a $0.325 dividend. This represents a $1.30 annualized dividend and a dividend yield of 6.6%. The ex-dividend date of this dividend is Tuesday, May 5th. Suburban Propane Partners’s dividend payout ratio (DPR) is presently 64.04%.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on SPH shares. Weiss Ratings upgraded shares of Suburban Propane Partners from a “hold (c+)” rating to a “buy (b)” rating in a research note on Wednesday, February 18th. Zacks Research raised shares of Suburban Propane Partners from a “hold” rating to a “strong-buy” rating in a research note on Monday, April 20th. Finally, Argus upgraded shares of Suburban Propane Partners to a “strong-buy” rating in a research report on Wednesday, January 21st. Two research analysts have rated the stock with a Strong Buy rating and one has issued a Buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Strong Buy”.

Hedge Funds Weigh In On Suburban Propane Partners

Several hedge funds and other institutional investors have recently bought and sold shares of SPH. Goldman Sachs Group Inc. increased its holdings in Suburban Propane Partners by 11.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,370,534 shares of the energy company’s stock worth $28,795,000 after buying an additional 142,547 shares during the period. Invesco Ltd. increased its holdings in Suburban Propane Partners by 8.1% in the 2nd quarter. Invesco Ltd. now owns 46,545 shares of the energy company’s stock worth $862,000 after buying an additional 3,479 shares during the period. Jane Street Group LLC acquired a new position in Suburban Propane Partners in the 2nd quarter worth approximately $2,278,000. Bank of America Corp DE increased its holdings in Suburban Propane Partners by 65.7% in the 2nd quarter. Bank of America Corp DE now owns 98,158 shares of the energy company’s stock worth $1,819,000 after buying an additional 38,937 shares during the period. Finally, Corient Private Wealth LLC grew its stake in shares of Suburban Propane Partners by 101.2% during the 2nd quarter. Corient Private Wealth LLC now owns 29,176 shares of the energy company’s stock worth $541,000 after purchasing an additional 14,674 shares during the period. Institutional investors and hedge funds own 30.94% of the company’s stock.

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.