It has been about a month since the last earnings report for Spire (SR). Shares have added about 3.1% in that time frame, outperforming the S&P 500.
But investors have to be wondering, 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 drivers.
Spire's Q3 Loss Wider Than Estimates, Revenues Decrease Y/Y
Spire Inc. reported a third-quarter fiscal 2026 adjusted loss of 26 cents per share, wider than the Zacks Consensus Estimate of a loss of 24 cents. The company reported adjusted loss of 29 cent in the year-ago quarter.
SR’s Revenues
Total revenues for the reported quarter were $420.2 million, which beat the Zacks Consensus Estimate of $398 million by 5.6%. The top line increased 19.2% from $352.5 million in the year-ago quarter.
Highlights of SR’s Earnings Release
Total operating expenses rose 20.1% year over year to $396.8 million. Natural gas costs increased to $101.2 million from $95.5 million, while operation and maintenance expenses climbed to $148.3 million from $119.6 million.
Operating income jumped 5.9% to $23.4 million from $22.1 million. However, net interest expense surged 78.7% to $85.6 million from $47.9 million.
SR’s Segmental Performance
Gas Utility: The segment reported an adjusted loss of $3.2 million, narrower than the prior-year loss of $10 million, reflecting improvement at both Spire Missouri and Spire Alabama.
Other: This segment reported an adjusted loss of $12.5 million compared with a loss of $3.3 million in the prior-year quarter. The variance in earnings is primarily due to higher corporate costs and interest expense.
SR Completes Portfolio Divestitures
Spire completed the divestitures of its Marketing and Storage businesses during the quarter. Following these transactions, the company’s results and guidance focus on continuing utility operations.
SR’s Financial Highlights
Cash and cash equivalents as of June 30, 2026 were $20.7 million compared with $5.7 million as of Sept. 30, 2025.
Long-term debt (less current portion) as of June 30, 2026 totaled $5.76 billion compared with $3.37 billion as of Sept. 30, 2025.
During the first nine months of fiscal 2026, the company generated net cash from operating activities of $613.6 million compared with $582.9 million in the same period last year.
SR’s Guidance
Spire maintained its fiscal 2026 adjusted earnings to be in the range of $3.90-$4.10 per share. The Zacks Consensus Estimate stands at $4.01, slightly above the midpoint of the company’s guided range.
Spire expects its fiscal 2027 adjusted earnings to be in the range of $5.40-$5.60 per share. The Zacks Consensus Estimate stands at $5.52, which is higher than the midpoint of the company’s guided range.
Expected capital expenditures for continuing operations in fiscal 2026 remain $797 million. SR expects its 10-year capital investment to be $11.2 billion through fiscal 2035. This planned investment is likely to drive long-term adjusted earnings per share growth of 5-7%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Spire has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the second quintile 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 this revision looks promising. Interestingly, Spire has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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This article originally published on Zacks Investment Research (zacks.com).