Suburban Propane Partners (NYSE:SPH) Issues Quarterly Earnings Results

Key Points

• Quarterly results missed expectations: Suburban Propane reported an adjusted loss of $0.26 per unit, versus the $0.15 consensus estimate, while revenue of $261.38 million exceeded forecasts. Adjusted EBITDA declined to $18 million from $27 million year over year.
• Retail propane volumes fell 1.8% amid unusually warm April weather, contributing to lower gross margins and higher operating expenses. The company also reported a wider adjusted net loss of $17.7 million.
• RNG projects and shareholder returns remain areas of support: The Upstate New York facility is online and the Columbus facility is expected to begin injections in the fourth quarter, while the partnership maintained a $0.325 quarterly dividend, yielding about 7.3%.

Suburban Propane Partners (NYSE:SPH - Get Free Report) posted its quarterly earnings results on Thursday. The energy company reported ($0.26) 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 firm 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 Stock Up 0.1%

Shares of NYSE:SPH traded up $0.02 during trading on Friday, hitting $17.76. 151,505 shares of the company were exchanged, compared to its average volume of 159,967. The firm's 50 day moving average price is $18.10 and its 200-day moving average price is $19.32. Suburban Propane Partners has a 12-month low of $16.53 and a 12-month 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 stock has a market capitalization of $1.18 billion, a P/E ratio of 9.06 and a beta of 0.40.

Suburban Propane Partners Announces Dividend

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

Analyst Ratings Changes

Several equities research analysts have recently issued reports on SPH shares. Wall Street Zen cut shares of Suburban Propane Partners from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Weiss Ratings lowered Suburban Propane Partners from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday. Finally, Zacks Research upgraded Suburban Propane Partners from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 10th. Two investment analysts have rated the stock with a Strong Buy rating and one has issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Buy".

Institutional Investors Weigh In On Suburban Propane Partners

Several hedge funds and other institutional investors have recently bought and sold shares of SPH. Steward Partners Investment Advisory LLC lifted its position in shares of Suburban Propane Partners by 11.8% during the 4th 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. Aristides Capital LLC grew its holdings in shares of Suburban Propane Partners by 4.3% in the 4th quarter. Aristides Capital LLC now owns 21,174 shares of the energy company's stock worth $393,000 after acquiring an additional 880 shares during the period. Janney Montgomery Scott LLC increased its stake in Suburban Propane Partners by 3.0% in the 4th quarter. Janney Montgomery Scott LLC now owns 54,517 shares of the energy company's stock valued at $1,011,000 after purchasing an additional 1,587 shares in the last quarter. Royal Bank of Canada raised its holdings in Suburban Propane Partners by 6.3% during the fourth quarter. Royal Bank of Canada now owns 27,871 shares of the energy company's stock worth $517,000 after purchasing an additional 1,660 shares during the last quarter. Finally, Truvestments Capital LLC purchased a new stake in Suburban Propane Partners during the fourth quarter worth $37,000. 30.94% of the stock is currently owned by institutional investors and hedge funds.

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.

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