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

Suburban Propane Partners (NYSE:SPH) released its quarterly earnings data on Thursday. The energy company reported $2.06 earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $551.21 million during 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 Price Performance

Suburban Propane Partners stock traded up $0.01 during mid-day trading on Friday, hitting $19.61. 162,019 shares of the company were exchanged, compared to its average volume of 120,886. The company has a debt-to-equity ratio of 2.11, a current ratio of 0.87 and a quick ratio of 0.61. The business’s 50 day simple moving average is $19.95 and its two-hundred day simple moving average is $19.44. The company has a market capitalization of $1.30 billion, a P/E ratio of 9.86 and a beta of 0.42. Suburban Propane Partners has a 12-month low of $17.30 and a 12-month high of $20.80.

Suburban Propane Partners Dividend Announcement

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

Institutional Investors Weigh In On Suburban Propane Partners

Hedge funds and other institutional investors have recently made changes to their positions in the business. Truvestments Capital LLC purchased a new stake in shares of Suburban Propane Partners in the fourth quarter valued at $37,000. Triumph Capital Management purchased a new stake in shares of Suburban Propane Partners in the third quarter valued at $50,000. Advisory Services Network LLC purchased a new stake in shares of Suburban Propane Partners in the third quarter valued at $62,000. Northwestern Mutual Wealth Management Co. grew its position in shares of Suburban Propane Partners by 669.5% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 4,671 shares of the energy company’s stock valued at $87,000 after purchasing an additional 4,064 shares during the period. Finally, Steward Partners Investment Advisory LLC grew its position in shares of 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 purchasing an additional 757 shares during the period. Hedge funds and other institutional investors own 30.94% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms recently weighed in on SPH. Argus raised Suburban Propane Partners to a “strong-buy” rating in a research note on Wednesday, January 21st. Zacks Research raised Suburban Propane Partners from a “hold” rating to a “strong-buy” rating in a research note on Monday, April 20th. Finally, Weiss Ratings raised Suburban Propane Partners from a “hold (c+)” rating to a “buy (b)” rating in a research note on Wednesday, February 18th. Two investment analysts have rated the stock with a Strong Buy rating and one has given a Buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Strong 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.