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

A month has gone by since the last earnings report for Spire (SR). Shares have added about 9.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Spire due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Spire Inc. before we dive into how investors and analysts have reacted as of late.

Spire's Q1 Earnings Higher Than Estimates, Revenues Rise Y/Y

Spire Inc. reported first-quarter fiscal 2026 adjusted earnings of $1.77 per share, which beat the Zacks Consensus Estimate of $1.62 by 9.3%. The company’s bottom line also rose 32.1% from $1.34 reported in the year-ago quarter.

SR’s Revenues

Total revenues for the reported quarter were $762.2 million, which surpassed the Zacks Consensus Estimate of $712 million by 7.1%. The top line also climbed 13.9% from $669.1 million in the year-ago quarter.

Highlights of SR’s Earnings Release

Operating expenses totaled $588.7 million, up 13.1% from $520.3 million recorded in the prior-year period.

Operating income came in at $173.5 million compared with $148.8 million in the prior-year quarter.

Net interest expenses increased 25.8% year over year to $60.4 million.

SR’s Segmental Performance

Gas Utility: The segment reported adjusted earnings of $103.9 million, indicating an improvement of 33.7% from the prior-year quarter’s figure. This improvement reflected higher Spire Missouri and Spire Alabama earnings.

Gas Marketing: The segment reported adjusted earnings of $4.5 million, indicating massive growth of 104.5% from the prior-year quarter’s figure. This increase was due to the higher optimization of its portfolio year over year.

Midstream: Adjusted earnings from this segment totaled $12.7 million, up 5.8% from the year-ago quarter’s reported number. This increase was due to higher Spire Storage revenues, reflecting additional capacity.

Other: This segment reported an adjusted loss of $12.7 million compared with a loss of $10.9 million in the prior-year quarter.

SR’s Financial Highlights

Cash and cash equivalents as of Dec. 31, 2025 were $4.1 million compared with $5.7 million as of Sept. 30, 2025.

Long-term debt (less current portion) as of Dec. 31, 2025 totaled $4.45 billion compared with $3.37 billion as of Sept. 30, 2025.

During the first three months of fiscal 2026, the company generated net cash from operating activities of $81 million compared with $81.1 million in the same period last year.

SR’s Guidance

Spire expects its fiscal 2026 adjusted earnings to be in the range of $5.25-$5.45 per share. The Zacks Consensus Estimate is pegged at $5.30, which is lower than the midpoint of the company’s guided range.

Spire expects its fiscal 2027 adjusted earnings to be in the range of $5.65-$5.85 per share. The Zacks Consensus Estimate stands at $5.71, which is lower than the midpoint of the company’s guided range.

SR expects its 10-year capital investment to be $11.2 billion through fiscal 2035. This planned investment is likely to drive long-term adjusted earnings per share growth of 5-7%.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates review.

VGM Scores

Currently, Spire has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Spire has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.