Suburban Propane Partners Misses on the Top and Bottom Lines

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Suburban Propane Partners (NYS: SPH) reported earnings on Feb. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 24 (Q1), Suburban Propane Partners missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share shrank significantly.

Margins contracted across the board.

Revenue details
Suburban Propane Partners recorded revenue of $299.9 million. The four analysts polled by S&P Capital IQ predicted net sales of $317.3 million. Sales were 8.7% lower than the prior-year quarter's $328.3 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.68. The four earnings estimates compiled by S&P Capital IQ anticipated $1.01 per share on the same basis. GAAP EPS of $0.65 for Q1 were 46% lower than the prior-year quarter's $1.21 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 16.8%, 540 basis points worse than the prior-year quarter. Operating margin was 10.1%, 520 basis points worse than the prior-year quarter. Net margin was 7.7%, 540 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $462 million. On the bottom line, the average EPS estimate is $2.63.

Next year's average estimate for revenue is $1.17 billion. The average EPS estimate is $3.13.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Suburban Propane Partners is hold, with an average price target of $47.21.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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