A month has gone by since the last earnings report for Spire (SR). Shares have added about 5.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Spire due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Spire's Q1 Earnings Lower Than Expected, Revenues Decline Y/Y

Spire Inc. reported first-quarter fiscal 2025 earnings of $1.34 per share, which lagged the Zacks Consensus Estimate of $1.42 by 5.6%. The company’s bottom line also declined 8.8% from $1.47 reported in the year-ago quarter.

SR’s Revenues

Total revenues for the reported quarter were $669.1 million, which missed the Zacks Consensus Estimate of $726 million by 7.8%. The top line also decreased 11.6% from $756.6 million in the year-ago quarter.

Highlights of SR’s Earnings Release

Operating expenses totaled $520.3 million, down 15.7% from $617.4 million recorded in the prior-year period.

Operating income came in at $148.8 million compared with $139.2 million in the prior-year quarter.

Net interest expenses decreased 5.1% year over year to $48 million.

SR’s Segmental Performance

Gas Utility: The segment reported adjusted earnings of $77.8 million, indicating an improvement of 2.6% from the prior-year quarter’s figure. The improvement reflected an increase in contribution margin due to higher Spire Missouri ISRS revenues and higher margins at Spire Alabama due to the annual rate update and usage net of weather mitigation.

Gas Marketing: The segment reported adjusted earnings of $2.2 million, indicating a decline of 69.4% from the prior-year quarter’s reported actuals. The decrease in earnings is a result of higher storage and transportation costs, along with less volatility in regional basis differences.

Midstream: Adjusted earnings from this segment totaled $12 million, up a massive 400% from the year-ago quarter’s reported number. This increase was driven by higher Spire Storage earnings, reflecting additional capacity and new renewals at higher rates.

Other: This segment reported an adjusted loss of $10.9 million compared with a loss of $2.7 million in the prior-year quarter.

SR’s Financial Highlights

Cash and cash equivalents as of Dec. 31, 2024, were $11.5 million compared with $4.5 million as of Sept. 30, 2024.

Long-term debt (less current portion) as of Dec. 31, 2024, totaled $3,697.7 million compared with $3,704.4 million as of Sept. 30, 2024.

Net cash provided by operating activities in the fiscal first quarter totaled $81.1 million compared with $70 million in the year-ago period.

SR’s 2025 Guidance

Spire still expects its fiscal 2025 earnings to be in the range of $4.40-$4.60 per share. The Zacks Consensus Estimate is pegged at $4.51 per share, which is higher than the midpoint of the company’s guided range.

SR still expects its 10-year capital investment to be $7.4 billion. This planned investment is expected to drive an annual rate-based growth of 7-8%. Capital expenditures for fiscal 2025 are expected to be $790 million.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

Currently, Spire has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Spire has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Spire is part of the Zacks Utility - Gas Distribution industry. Over the past month, Atmos Energy (ATO), a stock from the same industry, has gained 2.3%. The company reported its results for the quarter ended December 2024 more than a month ago.

Atmos reported revenues of $1.18 billion in the last reported quarter, representing a year-over-year change of +1.5%. EPS of $2.23 for the same period compares with $2.08 a year ago.

For the current quarter, Atmos is expected to post earnings of $2.94 per share, indicating a change of +3.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

Atmos has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.

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This article originally published on Zacks Investment Research (zacks.com).

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