Spire (SR) Q3 Loss Narrower Than Expected Loss, Sales Lag

Core Viewpoint - Spire Inc. reported a narrower loss in Q3 fiscal 2024 compared to the previous year, driven by strong performance across its segments despite a slight decline in total revenues [1][2][3]. Financial Performance - The company reported a loss of 14 cents per share, better than the Zacks Consensus Estimate of a loss of 18 cents [1]. - Total revenues for the quarter were $414.1 million, missing the Zacks Consensus Estimate of $415 million by 0.3% and down 1.2% from $419 million in the prior-year quarter [3]. - Total operating expenses decreased by 5.7% to $383.4 million from $406.5 million in the prior-year period [4]. - Operating income increased significantly by 155.8% to $30.7 million from $12 million in the prior-year quarter [4]. - Net interest expenses rose by 4.5% year over year to $48.8 million [4]. Segment Performance - Gas Utility segment reported a net economic loss of $11 million, an improvement from a loss of $12.3 million in the prior-year quarter [5]. - Gas Marketing segment achieved net economic earnings of $1 million, recovering from a loss of $2.5 million in the prior-year period due to improved transportation margins [5]. - Midstream segment reported net economic earnings of $13.9 million, up from $3.6 million in the year-ago period, driven by higher storage earnings and new contracts [6]. - Other activities reported a loss of $8.2 million, slightly worse than a loss of $7.4 million in the prior-year quarter [6]. Guidance and Future Outlook - Spire lowered its fiscal 2024 net economic earnings guidance to a range of $4.15-$4.25 per share from the previous range of $4.25-$4.45, citing adverse weather conditions and increased expenses [8]. - The Zacks Consensus Estimate for fiscal 2024 earnings is $4.32 per share, which is above the company's revised guidance [8]. - The company plans capital investments of $7.3 billion through 2033, expecting an annual rate-based growth of 7-8% [9]. - Fiscal 2024 capital expenditure guidance was raised from $800 million to $830 million due to increased deployment of advanced meters [9].