Suburban Propane Partners (NYSE:SPH) Posts Earnings Results, Beats Expectations By $0.16 EPS

Suburban Propane Partners (NYSE:SPH) announced its quarterly earnings results on Thursday. The energy company reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.53 by $0.16, FiscalAI reports. Suburban Propane Partners had a net margin of 7.44% and a return on equity of 16.31%. The firm had revenue of $370.39 million during the quarter, compared to the consensus estimate of $392.00 million.

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

• Sales and profitability improved: Retail propane gallons sold increased about 4.2% year‑over‑year and Adjusted EBITDA rose to $83.4M, up ~<$8.1M> (~11%) driven by colder weather in the East, customer growth and recent acquisitions.
• Gross margin expansion: Total gross margin was $238.6M, up $16.1M (7.2%), reflecting higher volumes and an improvement in propane unit margins of about $0.08 per gallon.
• RNG progress and investment: Average daily RNG injection increased (notably at Stanfield), commissioning began at the Upstate New York digester, Columbus upgrades are underway, and RNG injection is targeted to start in the second half of the fiscal year; Q1 RNG capex was about $6.8M.
• Higher operating costs and leverage: Operating & G&A rose $5M (3.4%) due to payroll, overtime and variable costs, and the partnership borrowed $115.4M on the revolver with consolidated leverage at 4.57x (up from 4.0x a year ago), which could pressure near‑term financial flexibility.
• Distribution maintained: The Board declared a quarterly distribution of $0.325 per unit (annualized $1.30) with a coverage ratio of about 2.19x, indicating currently sustainable cash payout coverage.

Suburban Propane Partners Trading Down 1.9%

Shares of NYSE SPH traded down $0.39 during midday trading on Friday, reaching $19.75. The company had a trading volume of 37,618 shares, compared to its average volume of 137,750. The firm’s fifty day moving average price is $19.15 and its 200-day moving average price is $18.77. The company has a quick ratio of 0.31, a current ratio of 0.55 and a debt-to-equity ratio of 2.02. Suburban Propane Partners has a one year low of $17.30 and a one year high of $22.24. The stock has a market cap of $1.31 billion, a PE ratio of 12.04 and a beta of 0.42.

Suburban Propane Partners Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 10th. Investors of record on Tuesday, February 3rd will be issued a $0.325 dividend. The ex-dividend date of this dividend is Tuesday, February 3rd. This represents a $1.30 annualized dividend and a yield of 6.6%. Suburban Propane Partners’s dividend payout ratio (DPR) is 79.27%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Suburban Propane Partners by 4.8% in the 3rd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 4,177,601 shares of the energy company’s stock worth $77,912,000 after buying an additional 192,154 shares during the period. Goldman Sachs Group Inc. raised its holdings in shares of 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 valued at $28,795,000 after purchasing an additional 142,547 shares in the last quarter. Jane Street Group LLC bought a new position in Suburban Propane Partners in the second quarter worth approximately $2,278,000. Bank of America Corp DE increased its holdings in shares of 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 valued at $1,819,000 after acquiring an additional 38,937 shares during the period. Finally, Lido Advisors LLC lifted its stake in shares of Suburban Propane Partners by 17.3% during the 3rd quarter. Lido Advisors LLC now owns 199,292 shares of the energy company’s stock worth $3,717,000 after purchasing an additional 29,369 shares during the last quarter. 30.94% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on SPH. Weiss Ratings restated a “hold (c)” rating on shares of Suburban Propane Partners in a research note on Wednesday, January 21st. Zacks Research upgraded shares of Suburban Propane Partners to a “hold” rating in a research report on Friday, January 23rd. Finally, Argus upgraded shares of Suburban Propane Partners to a “strong-buy” rating in a research report on Wednesday, January 21st. One analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate 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.