Spire (SR) Tops Q2 EPS by 62c, Revenues Beat; Raises FY21 EPS Outlook Above Consensus

Spire (NYSE: SR) reported Q2 EPS of $3.71, $0.62 better than the analyst estimate of $3.09. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $773.79 million.

• Second quarter fiscal 2021 net income of $187.4 million ($3.55 per diluted share), compared to $133.6 million ($2.54 per share) in the prior year
• Net economic earnings* (NEE) of $195.6 million ($3.71 per share), up from $144.0 million ($2.75 per share) a year ago, reflecting strong Spire Marketing performance
• Results for Spire Marketing include value created during the February cold weather event, and our fiscal 2021 NEE guidance range has been increased to $4.30 - $4.50 per share

"During February's severe winter weather, teams across Spire ensured our communities maintained access to the energy they needed to stay safe and warm, while doing everything we could to minimize impact to cost. At the same time, our Spire Marketing business was well positioned to meet customer needs, while also capturing additional value," said Suzanne Sitherwood, president and chief executive officer. "Our exceptional operating performance reflects thoughtful preparation and the benefits of our investments in natural gas supply, storage resources and the Spire STL Pipeline. We are also delivering on our commitment to be a carbon neutral company by midcentury, and will be issuing an update on our ESG progress next week in our third annual Corporate Social Responsibility report."

GUIDANCE:

Spire sees FY2021 EPS of $4.30-$4.50, versus the consensus of $4.17.

As a result of the performance of Spire Marketing in our second quarter, we are increasing our fiscal 2021 NEE expectation range to $4.30 - $4.50 per share. First half results and our strong financial position at March 31 also allowed us to reduce our planned equity needs through 2023.

Our annual long-term NEE per share growth target remains 5-7 percent, driven by continued, consistent growth of our gas utilities. Our long-term targets are based on expected annual rate base growth of 7-8 percent driven by investment in pipeline upgrades as well as technology upgrades and new business. The pipeline upgrades enhance system reliability and safety while supporting further reductions in methane emissions.

We affirm our 5-year capital expenditures outlook through fiscal 2025 of $3.0 billion and our expected fiscal 2021 investment of $590 million.

For earnings history and earnings-related data on Spire (SR) click here.

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