Why Is Spire (SR) Up 9.3% Since Last Earnings Report?

Core Insights - Spire Inc. reported strong Q1 fiscal 2026 earnings, with adjusted earnings of $1.77 per share, exceeding estimates by 9.3% and showing a year-over-year increase of 32.1% from $1.34 [2] - Total revenues for the quarter reached $762.2 million, surpassing estimates by 7.1% and increasing 13.9% from $669.1 million in the previous year [3] Financial Performance - Operating expenses rose to $588.7 million, a 13.1% increase from $520.3 million in the prior-year period [4] - Operating income was reported at $173.5 million, up from $148.8 million in the prior-year quarter [4] - Net interest expenses increased by 25.8% year over year to $60.4 million [4] Segment Performance - Gas Utility segment reported adjusted earnings of $103.9 million, a 33.7% improvement from the prior-year quarter [5] - Gas Marketing segment saw adjusted earnings of $4.5 million, a significant growth of 104.5% year over year [5] - Midstream segment adjusted earnings totaled $12.7 million, up 5.8% from the previous year [6] - Other segment reported an adjusted loss of $12.7 million, compared to a loss of $10.9 million in the prior-year quarter [6] Financial Position - Cash and cash equivalents as of December 31, 2025, were $4.1 million, down from $5.7 million as of September 30, 2025 [7] - Long-term debt as of December 31, 2025, totaled $4.45 billion, an increase from $3.37 billion as of September 30, 2025 [7] - Net cash from operating activities for the first three months of fiscal 2026 was $81 million, slightly down from $81.1 million in the same period last year [7] Guidance and Outlook - Spire expects fiscal 2026 adjusted earnings to be in the range of $5.25-$5.45 per share, with the Zacks Consensus Estimate at $5.30 [8] - For fiscal 2027, adjusted earnings are expected to be in the range of $5.65-$5.85 per share, with the Zacks Consensus Estimate at $5.71 [9] - The company plans a 10-year capital investment of $11.2 billion through fiscal 2035, aiming for long-term adjusted earnings per share growth of 5-7% [9] Market Reaction - Since the earnings release, there has been an upward trend in estimates for the stock [10] - Spire currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [12]