NYSE$SR

Spire Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Spire's financial performance for the second quarter of fiscal year 2022 was reported, showing a decrease in net income and net economic earnings compared to the previous year, while earnings guidance for fiscal year 2022 was narrowed.

Spire Inc. reported a net income of $173.6 million ($3.27 per diluted share) for Q2 2022, compared to $187.4 million ($3.55 per share) in the prior year. Net economic earnings were $181.0 million ($3.42 per share), down from $195.6 million ($3.71 per share) a year ago. The company narrowed its earnings guidance range for fiscal 2022 to $3.75 - $3.95 per share.

  • Net income was $173.6 million, or $3.27 per diluted share, compared to $187.4 million, or $3.55 per share in the prior year.
  • Net economic earnings were $181.0 million, or $3.42 per share, down from $195.6 million, or $3.71 per share a year ago.
  • Earnings guidance range for fiscal 2022 narrowed to $3.75 - $3.95 per share.
  • Spire Missouri filed a new rate review focused on recovering their full cost of service and earning a fair and reasonable rate of return.

Headline financials

Total Revenue

$881M

Previous: $1.1B-20.3%
EPS (adj)

$3.42

Previous: $3.71-7.8%
Weighted Average Diluted Shares Outstanding

51.9M

No prior period
Capital Expenditures

-$276M

Previous: -$304M+9.1%
Free Cash Flow

-$102M

Previous: -$116M+11.9%
Net Income

$174M

Previous: $187M-7.4%
Operating Income

$245M

Previous: $257M-4.7%
Gross Profit

$376M

Previous: $367M+2.4%
Cash & Equivalents

$8.3M

Previous: $104M-92.0%
Total Assets

$9.4B

Previous: $8.94B+5.2%

Revenue & EPS history

Spire · Revenue · Quarterly

$881M

Q2 2022-20.3%vs Q2 2021
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Spire · $895M total across 3 segments · Q2 2022

  • Gas Utility
    $817M
  • Gas Marketing
    $59.4M+77.8%
  • Other
    $18.1M

Forward guidance

The company narrowed its fiscal 2022 NEE guidance range to $3.75 - $3.95 per share, reflecting the deferral of overhead costs at Spire Missouri and year-to-date financial performance.

Tailwinds

  • Confidence in long-term ability to grow NEE per share 5-7%.
  • Growth strategy in place.
  • Expectations of reasonable regulatory outcomes.
  • Planned capital investment in infrastructure upgrades.
  • Targeted capital investment for the 5-year period through fiscal 2026 remains $3.1 billion.

Headwinds

  • Deferral of non-operational overhead costs for Spire Missouri into a regulatory asset.
  • Prior-year results reflect the impacts of the February cold weather event (Winter Storm Uri), which led to outsized performance by Gas Marketing, compared to the current-year quarter.
  • Performance in the current-year period reflects less favorable market conditions, offset by favorable resolution of certain customer claims from the prior year.
  • O&M costs were $4.7 million lower, after removing a $3.1 million non-service cost transfer to other income (no earnings impact) and net regulatory adjustments of $8.0 million, reflecting lower employee-related costs and bad debt expenses.
  • The prior year reflected the favorable impacts of Winter Storm Uri for Gas Marketing.

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 2022

Historical avgQ2 2022

+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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