Suburban Propane Partners (NYSE:SPH) Posts Earnings Results, Beats Estimates By $0.32 EPS

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

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

SPH stock traded up $0.01 during trading on Friday, reaching $19.61. The company had a trading volume of 162,019 shares, compared to its average volume of 120,886. The firm has a 50-day simple moving average of $19.95 and a 200-day simple moving average of $19.44. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.61 and a current ratio of 0.87. The company has a market cap of $1.30 billion, a price-to-earnings ratio of 9.86 and a beta of 0.42. Suburban Propane Partners has a twelve month low of $17.30 and a twelve month high of $20.80.

Suburban Propane Partners Announces Dividend

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

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Truvestments Capital LLC purchased a new position in Suburban Propane Partners during the fourth quarter valued at approximately $37,000. Triumph Capital Management purchased a new position in Suburban Propane Partners during the third quarter valued at approximately $50,000. Advisory Services Network LLC purchased a new position in Suburban Propane Partners during the third quarter valued at approximately $62,000. Northwestern Mutual Wealth Management Co. raised 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 in the last quarter. Finally, Steward Partners Investment Advisory LLC raised its position in Suburban Propane Partners by 11.8% during 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 in the last quarter. 30.94% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on SPH shares. 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. Weiss Ratings raised shares of Suburban Propane Partners from a “hold (c+)” rating to a “buy (b)” rating in a research note on Wednesday, February 18th. Finally, Argus raised shares of Suburban Propane Partners to a “strong-buy” rating in a research note on Wednesday, January 21st. Two investment analysts have rated the stock with a Strong Buy rating and one has issued a Buy rating to the stock. Based on data from MarketBeat, Suburban Propane Partners currently has an average rating of “Strong 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.