Superior Plus (TSE:SPB) faces a challenging start to 2023, after missing its quarterly earnings estimate by C$0.03, according to the Q1 report released on February 16th. The company reported an EPS of C$0.27 and revenue of C$1.07 billion during the quarter, compared to analysts’ expectations of C$0.30 and C$1.06 billion respectively.
With a negative net margin of 3.33% and a negative return on equity of 6.34%, Superior Plus is currently engaged in the energy distribution business across two segments – U.S. Propane Distribution and Canadian Propane Distribution.
The U.S. Propane Distribution segment distributes propane, heating oil, and other liquid fuels across various regions in the U.S., including the Northeast, Atlantic, Southeast, Midwest, and California.
On May 10th, shares of Superior Plus Corp opened at C$9.50 with a 50-day moving average of C$10.76 and a 200-day moving average of C$10.61.
As at date, the company has a debt-to-equity ratio of 147.15 with a current ratio of 1.16 and a quick ratio of 0.46; it also has a market capitalization of $1.91 Billion and boasts -16.67 PE Ratio coupled with its beta score that stands at 0.87.
Although Superior Plus saw earnings decline in Q1 due to its failure to meet estimates earlier this year, it is hoped that the company will take steps towards improvement as it strives to remain competitive in its markets while addressing underlying issues negatively affecting profitability.
Investors are advised to keep abreast with future developments as they unfold concerning Superior Plus; while these issues continue to be addressed for their eventual resolution which will strengthen investors’ confidence in the brand as well as its shareholders.
Superior Plus Corp Grapples with Q1 2023 Earnings Decline amid Market Volatility
Superior Plus Corp facing challenges as Q1 2023 earnings fall
One of Canada’s leading energy distribution companies, Superior Plus Corp (SPB) has recently experienced a fall in Q1 2023 earnings which have been reduced from $0.50 to $0.42 per share according to an equity research note issued by Raymond James on May 8th, 2023.
This decline comes despite a positive consensus estimate for Superior Plus’ full-year earnings figure of $0.58 per share, suggesting that this is likely an isolated issue and not something to cause too much concern at this stage.
Raymond James also released predictions for Superior Plus’ Q4 2023 earnings, giving them an estimated EPS of $0.34 and further projections for FY2024 standing at $0.62 EPS respectively.
Many industry experts have offered their opinions with ATB Capital lowering the company’s target price from C$12.50 to C$12 in February, just a few weeks after Canaccord Genuity Group also lowered its target price on SPB from C$13 down to the same C$12 mark.
However, it hasn’t been all bad news; during the same period, BMO Capital Markets set its price target on Superior Plus at C$12.50 while Scotiabank increased theirs up from C$12 to C$13.
Many specialists believe these changes in analysts’ opinions are indicative of the current volatility in markets as we move through uncertain financial times.
On top of such changeable market conditions, Superior Plus has faced pressure caused by the recent announcement that it would reduce its quarterly dividend payments due to unsatisfactory financial performance.
That being said, investors may yet find relief in the fact that Superior Plus continues to offer some dividend yields – mostly thanks to its latest annual dividend payout ratio (DPR) which has stood at -126.32%, offering shareholders access to a dividend yield of 7.58%.
All in all, Superior Plus’ recent struggles may be viewed as part and parcel of the current market volatility companies are facing worldwide, although some industry insiders may argue that the company has measures in place to fend off such challenges and maintain steady growth over the long term.
