ST. LOUIS - Spire Inc. (NYSE: NYSE:SR) shares edged lower by 1.41% after the company reported its fiscal 2024 second-quarter results, which fell short of Wall Street expectations.
The energy company posted adjusted earnings per share (EPS) of $3.58, missing the analyst consensus of $3.81. Revenue for the quarter was also below expectations, coming in at $1.13 billion against the forecasted $1.14 billion.
In comparison to the same quarter last year, Spire's net income increased from $179.2 million ($3.33 per share) to $204.3 million ($3.58 per share). However, net economic earnings (NEE), a non-GAAP measure, decreased from $199.2 million ($3.70 per share) to $196.6 million ($3.45 per share). This decline in NEE was attributed to a warmer winter leading to reduced gas utility usage in Missouri, as well as higher interest expenses, which offset gains from new rates.
Despite the quarterly miss, Spire's President and CEO, Steve Lindsey, remained optimistic about the company's full-year outlook. "Despite a warmer than normal winter and higher interest costs, we continue to expect to meet our full year earnings target," Lindsey stated. Spire reaffirmed its fiscal 2024 guidance for NEE in the range of $4.25 to $4.45 per share, which aligns with its long-term growth strategy and capital expenditure plans aimed at infrastructure upgrades and new business in the Gas Utility segment.
For the fiscal 2024 second quarter, the Gas Utility segment reported an increase in NEE to $188.0 million from $183.9 million in the prior year, reflecting higher earnings at Spire Alabama partially offset by lower Spire Missouri earnings. The Gas Marketing and Midstream segments reported lower earnings compared to the previous year due to less favorable market conditions that did not recur.
Spire's capital investment target through fiscal 2033 is set at $7.3 billion, with expected capital expenditures for fiscal 2024 increased from $765 million to $800 million. This investment is driven by the need for infrastructure upgrades and expansion in the Gas Utility segment.
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