Suburban Propane Partners (NYSE:SPH) Announces Earnings Results

Suburban Propane Partners (NYSE:SPH) released its quarterly earnings results on Thursday. The energy company reported $0.69 earnings per share (EPS) for the quarter, topping 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 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 Down 0.4%

Shares of SPH stock traded down $0.09 during trading on Thursday, reaching $19.93. The company’s stock had a trading volume of 79,788 shares, compared to its average volume of 138,992. The company has a debt-to-equity ratio of 2.02, a current ratio of 0.55 and a quick ratio of 0.31. The stock’s 50-day moving average price is $19.13 and its 200 day moving average price is $18.76. Suburban Propane Partners has a 1-year low of $17.30 and a 1-year high of $22.24. The company has a market capitalization of $1.32 billion, a price-to-earnings ratio of 12.10 and a beta of 0.42.

Suburban Propane Partners Announces Dividend

The firm also recently declared 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. This represents a $1.30 annualized dividend and a yield of 6.5%. The ex-dividend date is Tuesday, February 3rd. Suburban Propane Partners’s dividend payout ratio is 79.27%.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Triumph Capital Management acquired a new position in shares of Suburban Propane Partners in the 3rd quarter worth approximately $50,000. Advisory Services Network LLC acquired a new position in Suburban Propane Partners in the 3rd quarter valued at about $62,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of Suburban Propane Partners by 669.5% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 4,671 shares of the energy company’s stock worth $87,000 after purchasing an additional 4,064 shares in the last quarter. Kestra Private Wealth Services LLC boosted its position in shares of Suburban Propane Partners by 23.0% in the third quarter. Kestra Private Wealth Services LLC now owns 16,033 shares of the energy company’s stock worth $299,000 after buying an additional 3,000 shares during the period. Finally, Resources Management Corp CT ADV boosted its position in Suburban Propane Partners by 2,050.5% during the 3rd quarter. Resources Management Corp CT ADV now owns 20,000 shares of the energy company’s stock worth $373,000 after acquiring an additional 19,070 shares during the period. Institutional investors and hedge funds own 30.94% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the stock. Argus raised shares of Suburban Propane Partners to a “strong-buy” rating in a research note on Wednesday, January 21st. Zacks Research raised Suburban Propane Partners to a “hold” rating in a research note on Friday, January 23rd. Finally, Weiss Ratings restated 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 given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy”.

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.