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

Core Viewpoint - Spire Inc. reported disappointing first-quarter fiscal 2025 earnings, missing consensus estimates and showing a decline in both earnings per share and total revenues compared to the previous year [1][2]. Financial Performance - Earnings per share for the first quarter were $1.34, falling short of the Zacks Consensus Estimate of $1.42 by 5.6% and down 8.8% from $1.47 in the same quarter last year [1]. - Total revenues amounted to $669.1 million, missing the Zacks Consensus Estimate of $726 million by 7.8% and decreasing 11.6% from $756.6 million year-over-year [2]. Operating Expenses and Income - Operating expenses were reported at $520.3 million, a decrease of 15.7% from $617.4 million in the prior-year period [3]. - Operating income increased to $148.8 million compared to $139.2 million in the prior-year quarter [3]. - Net interest expenses decreased by 5.1% year-over-year to $48 million [3]. Segment Performance - Gas Utility: Adjusted earnings were $77.8 million, up 2.6% from the prior-year quarter, driven by higher contribution margins [4]. - Gas Marketing: Adjusted earnings fell to $2.2 million, a decline of 69.4% from the previous year, attributed to increased costs and reduced volatility [5]. - Midstream: Adjusted earnings surged to $12 million, a 400% increase from the year-ago quarter, due to higher Spire Storage earnings [6]. - Other: This segment reported an adjusted loss of $10.9 million, worsening from a loss of $2.7 million in the prior-year quarter [6]. Cash Flow and Debt - Cash and cash equivalents as of December 31, 2024, were $11.5 million, up from $4.5 million as of September 30, 2024 [7]. - Long-term debt (less current portion) was $3,697.7 million as of December 31, 2024, slightly down from $3,704.4 million as of September 30, 2024 [7]. - Net cash provided by operating activities totaled $81.1 million, compared to $70 million in the year-ago period [7]. Future Guidance - The company expects fiscal 2025 earnings to be in the range of $4.40-$4.60 per share, with the Zacks Consensus Estimate at $4.51 per share [8]. - Spire plans a 10-year capital investment of $7.4 billion, aiming for an annual rate-based growth of 7-8% [8]. - Capital expenditures for fiscal 2025 are projected to be $790 million [8].