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

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 analysts’ consensus estimates 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 for 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 Stock Performance

NYSE:SPH traded down $0.26 during mid-day trading on Thursday, hitting $19.75. 74,925 shares of the company traded hands, compared to its average volume of 138,887. Suburban Propane Partners has a one year low of $17.30 and a one year high of $22.24. The company has a quick ratio of 0.31, a current ratio of 0.55 and a debt-to-equity ratio of 2.02. The firm has a market cap of $1.31 billion, a price-to-earnings ratio of 12.01 and a beta of 0.42. The stock’s fifty day moving average price is $19.13 and its 200-day moving average price is $18.76.

Suburban Propane Partners Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, February 10th. Investors of record on Tuesday, February 3rd will be given a dividend of $0.325 per share. The ex-dividend date is Tuesday, February 3rd. This represents a $1.30 annualized dividend and a yield of 6.6%. Suburban Propane Partners’s payout ratio is 79.27%.

Analyst Upgrades and Downgrades

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

Hedge Funds Weigh In On Suburban Propane Partners

Several large investors have recently added to or reduced their stakes in SPH. Creative Planning boosted its stake in shares of Suburban Propane Partners by 7.5% in the third quarter. Creative Planning now owns 33,764 shares of the energy company’s stock worth $630,000 after acquiring an additional 2,343 shares during the period. Raymond James Financial Inc. boosted its stake in shares of Suburban Propane Partners by 3.0% during the third quarter. Raymond James Financial Inc. now owns 199,156 shares of the energy company’s stock valued at $3,714,000 after purchasing an additional 5,769 shares in the last quarter. Private Advisor Group LLC increased its holdings in shares of Suburban Propane Partners by 15.7% in the 3rd quarter. Private Advisor Group LLC now owns 74,437 shares of the energy company’s stock valued at $1,388,000 after acquiring an additional 10,111 shares during the period. Bank of America Corp DE lifted its position in shares of Suburban Propane Partners by 65.7% during the second quarter. Bank of America Corp DE now owns 98,158 shares of the energy company’s stock valued at $1,819,000 after buying an additional 38,937 shares during the last quarter. Finally, Jane Street Group LLC purchased a new position in shares of Suburban Propane Partners in the 2nd quarter worth approximately $2,278,000. Hedge funds and other institutional investors own 30.94% of the company’s stock.

About Suburban Propane Partners

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.