NYSE$SR

Spire Inc. · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Spire's financial performance decreased in Q2 2020, impacted by warmer weather and other factors.

Spire Inc. reported a decrease in net income for the second quarter ended March 31, 2020, with net income of $133.6 million ($2.54 per diluted share), compared to $154.6 million ($3.04 per share) in the prior year. Net economic earnings also decreased to $144.0 million ($2.75 per share) from $147.9 million ($2.90 per share) a year ago, primarily due to warmer weather impacting margins. The company increased its FY20 capital expenditures plan to $640 million and launched a 5-year capital plan through 2024 totaling $2.8 billion.

  • Net income decreased to $133.6 million ($2.54 per diluted share) from $154.6 million ($3.04 per share) in the prior year.
  • Net economic earnings decreased to $144.0 million ($2.75 per share) from $147.9 million ($2.90 per share) a year ago, reflecting warmer than normal weather.
  • FY20 capital expenditures plan increased to $640 million, with a 5-year capital plan through 2024 totaling $2.8 billion.
  • Proactive steps were taken to address the coronavirus health crisis and its economic impact on customers, including suspending service disconnections and late payment fees.

Headline financials

Total Revenue

$716M

Previous: $804M-11.0%
EPS (adj)

$2.75

Previous: $2.90-5.2%
Capital Expenditures

$154M

Previous: $170M-9.5%
Free Cash Flow

$103M

Previous: $57.1M+81.1%
Net Income

$134M

Previous: $155M-13.6%
Operating Income

$211M

Previous: $210M+0.5%
Gross Profit

$309M

No prior period
Cash & Equivalents

$108M

Previous: $11.1M+876.6%
Total Assets

$8.02B

Previous: $7.27B+10.2%

Revenue & EPS history

Spire · Revenue · Quarterly

$716M

Q2 2020-11%vs Q2 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Spire · $727M total across 3 segments · Q2 2020

  • Gas Utility
    $679M
  • Gas Marketing
    $33.3M
  • Other
    $14.7M

Forward guidance

Spire has updated its expected fiscal 2020 capital investment, increasing it by $30 million to $640 million, with $560 million earmarked for our gas utilities and $80 million for our gas-related businesses. We have also updated our 5-year capital expenditure plan to now include 2024, with total investment expected to be $2.8 billion and supporting utility rate base growth of 7-8 percent over that time period. We affirm our annual long-term NEE per share growth target of 4-7 percent. At this time, we are not providing fiscal 2020 earnings guidance due to the uncertainty over the resolution of ISRS cases in Missouri.

Tailwinds

  • Updated fiscal 2020 capital investment increased by $30 million to $640 million.
  • $560 million earmarked for gas utilities and $80 million for gas-related businesses.
  • Updated 5-year capital expenditure plan includes 2024, with total investment expected to be $2.8 billion.
  • Utility rate base growth of 7-8 percent expected over the 5-year period.
  • Annual long-term NEE per share growth target of 4-7 percent is affirmed.

Headwinds

  • Fiscal 2020 earnings guidance not provided due to uncertainty over the resolution of ISRS cases in Missouri.
  • Potential impact from the coronavirus, including higher costs, lower demand, and economic slowdown, could adversely impact the remainder of calendar 2020.
  • Monitoring potential impacts of the coronavirus, including lower demand and fees and higher bad debts and other operating costs.
  • Pursuing operational efficiencies and potential regulatory mechanisms to offset the impacts of the coronavirus.
  • Financial impact from the coronavirus is anticipated for the remainder of calendar 2020.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.2%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.2%

Avg return

30 days after

55%

38 / 69 earnings

Positive

+4.6%

Q1 2021

Best reaction

-3.8%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-1.3%-4.6%-8.4%
Q1 2026-0.5%+0.9%+6.7%
Q4 2025-1.7%-4.5%-6.6%
Q2 2025-0.7%-1.3%-2.3%
Q1 2025+0.2%+1.2%+7.7%
Q4 2024+4.0%+8.0%-1.8%
Q3 2024-1.9%-5.4%-2.4%
Q2 2024-0.2%-1.0%-0.8%
Q1 2024+3.9%+2.1%+5.0%
Q4 2023+2.4%-0.3%+5.0%
Q3 2023-2.2%-2.0%-5.4%
Q2 2023+2.6%+2.5%-1.7%
Q1 2023+3.2%+4.1%-3.1%
Q4 2022-2.0%+3.5%-6.0%
Q3 2022-1.9%+1.4%-6.4%
Q2 2022+2.8%+0.8%+5.6%
Q1 2022-2.5%-4.0%+6.8%
Q4 2021+1.7%-0.2%+4.0%
Q3 2021-0.5%-1.8%-9.3%
Q2 2021+1.2%-3.2%-5.7%
Q1 2021+4.6%+3.2%+13.9%
Q4 2020-1.8%-0.3%-0.5%
Q3 2020-2.2%+0.5%-7.4%
Q2 2020+0.7%-3.6%+4.9%
Q1 2020+1.6%+1.8%-4.1%
Q4 2019+0.9%+0.4%+7.0%
Q3 2019-3.8%-4.7%-1.3%
Q2 2019+0.4%+1.3%-1.0%
Q1 2019-0.9%-2.0%+0.5%
Q4 2018+3.9%+4.7%+4.5%
Q3 2018+1.3%+4.7%+5.1%
Q2 2018-0.1%-2.0%-3.0%
Q1 2018-2.8%-7.8%+1.8%
Q4 2017+0.2%-0.5%-2.0%
Q3 2017+2.0%+2.6%+5.0%
Q2 2017+0.7%+2.6%+6.0%
Q1 2017-2.6%-3.5%+1.5%
Q4 2016+1.4%+2.5%+0.7%
Q3 2016-0.7%-1.4%-5.8%
Q2 2016+1.4%
Q1 2016+0.4%
Q4 2015+1.8%
Q3 2015+1.3%
Q2 2015+0.8%
Q1 2015+1.2%
Q4 2014+0.8%
Q3 2014-0.4%
Q2 2014+0.2%
Q1 2014+0.3%
Q4 2013+0.1%
Q3 2013+1.1%
Q2 2013-0.3%
Q1 2013-0.5%
Q4 2012-0.8%
Q3 2012-0.5%
Q2 2012-0.3%
Q1 2012+0.4%
Q4 2011-3.0%
Q3 2011+2.5%
Q2 2011+1.2%
Q1 2010-3.7%
Q1 2011-0.4%
Q4 2010+0.3%
Q4 2008+0.3%
Q3 2009+1.1%
Q3 2010+1.1%
Q4 2009-0.8%
Q2 2009-0.8%
Q2 2010-0.8%

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