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

Suburban Propane Partners (NYSE:SPH) released its 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. Suburban Propane Partners had a net margin of 9.37% and a return on equity of 18.97%. The firm had revenue of $261.38 million during the quarter, compared to analysts’ expectations 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 Stock Up 0.1%

SPH stock traded up $0.02 on Friday, reaching $17.76. 151,505 shares of the company traded hands, compared to its average volume of 159,967. Suburban Propane Partners has a one year low of $16.53 and a one year high of $20.80. The company has a debt-to-equity ratio of 1.69, a current ratio of 1.08 and a quick ratio of 0.82. The company has a market cap of $1.18 billion, a P/E ratio of 9.06 and a beta of 0.40. The firm has a fifty day simple moving average of $18.10 and a 200-day simple moving average of $19.32.

Suburban Propane Partners Announces Dividend

The business 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 is Tuesday, August 4th. This represents a $1.30 annualized dividend and a dividend yield of 7.3%. 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 modified their holdings of SPH. Truvestments Capital LLC purchased a new position in Suburban Propane Partners in the fourth quarter worth about $37,000. Triumph Capital Management purchased a new position in shares of Suburban Propane Partners in the 3rd quarter worth $50,000. Advisory Services Network LLC bought a new stake in shares of Suburban Propane Partners in the third quarter worth $62,000. Northwestern Mutual Wealth Management Co. increased its position 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 valued at $87,000 after acquiring an additional 4,064 shares during the last quarter. Finally, Steward Partners Investment Advisory LLC lifted 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 acquiring an additional 757 shares during the period. 30.94% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

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