Suburban Propane Partners Earnings: Here’s Why Investors are Ambivalent Now

Suburban Propane Partners LP (NYSE:SPH) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Suburban Propane Partners LP Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 65.22% to $2.28 in the quarter versus EPS of $1.38 in the year-earlier quarter.

Revenue: Rose 89.7% to $678.42 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Suburban Propane Partners LP reported adjusted EPS income of $2.28 per share. By that measure, the company missed the mean analyst estimate of $2.53. It missed the average revenue estimate of $700.22 million.

Quoting Management: In announcing these results, President and Chief Executive Officer Michael J. Dunn, Jr., said, “We are very pleased with our results for the second quarter of fiscal 2013. While the unseasonably warm temperatures that were experienced in the first quarter of fiscal 2013 carried over into the first several weeks of the second quarter, a burst of cold weather from late February through March brought average temperatures for the quarter closer to normal. When the cold weather did arrive, our people and combined businesses responded.”

Key Stats (on next page)…

Revenue increased 38.26% from $490.7 million in the previous quarter. EPS increased 119.23% from $1.04 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.6 and has not changed. For the current year, the average estimate has moved down from a profit of $2.58 to a profit of $2.27 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)