Suburban Propane Q1 net income jumps, EBITDA up 10.8%

Reuters
Feb 05
Suburban Propane Q1 net income jumps, EBITDA up 10.8%

Overview

  • Propane distributor's fiscal Q1 net income rose significantly yr/yr

  • Adjusted EBITDA for fiscal Q1 improved 10.8%, driven by higher propane volumes

  • Company acquired two propane businesses in California for $24 mln

Outlook

  • Suburban Propane progresses RNG facility projects in New York and Ohio

Result Drivers

  • COOLER TEMPERATURES - Cooler average temperatures in the Northeast, Mid-Atlantic, and Midwest drove a 4.2% increase in propane volumes sold, according to CEO Michael A. Stivala

  • RNG OPERATIONS - Improved RNG injection due to increased facility uptime and operational enhancements in Arizona, with new facility commissioning in New York

  • STRATEGIC ACQUISITIONS - Acquired two propane businesses in California for $24 mln, advancing strategic growth plans

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 EPS

$0.69

Q1 Net Income

$45.78 mln

Q1 Adjusted EBITDA

$83.41 mln

Q1 EBITDA

$82.63 mln

Q1 Operating Income

$67.65 mln

Q1 Pretax Profit

$46.01 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas refining and marketing peer group is "buy"

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn7LZwzna

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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