Spark Energy Reports So-So Earnings

Well our current concern with the earnings of Spark Energy (NASDAQ:SPKE) is alleviated as the company reported earnings that were so-so.  The company is still being dogged by the weather and the cost of hedging electrical supplies–but as a preferred stock investor we are less concerned that the company have  stellar earnings–and more concerned that they simply are performing in a manner that has plenty of cash flow to pay the preferred stock dividends.

The company reported earnings of $23.9 million for the quarter ending 6/30 with 26.9% growth in retail customer counts.  Unfortunately the retail gross margin is just $15.54 per megawatt hour compared to $25.28 last year as the cost of hedging played havoc with margins.

Regardless of just barely acceptable earnings at least they were not the feared disaster.  Given that the preferred shares sold off 2% since we wrote on Tuesday we would think that shares would be relatively stable from here, but we shall observe and decide on the path forward when we see some price action.

Details of the preferred (NASDAQ:SPKEP) can be seen here.

The company press release can be found here.

 

 

5 thoughts on “Spark Energy Reports So-So Earnings”

  1. Tim, I have much to say after reading Spark Energy’s earnings report. They posted excellent growing retail revenue, cash is up, inventory is down, profitable and total liabilities are much lower. IF you are a common shareholder you still have many questions (many may/will be answered tomorrow morning during the conference call). IF you are a preferred holder you can now breathe a sigh of relief that Spark is operating in the best interest of their debt and preferred holders. Wishing you profitable investing, Nomad

    1. Tim. Off topic.. Is there an option on this site to allow a poster to get notified that a response was made to any particular thread ? I looked and think not but thought I would ask. Thank you again for putting up a quite informative site.

  2. Good news indeed, or at least, not as bad as feared. Still, we were wise to trim going into the report, IMO.

    1. I did the same this afternoon. After looking at the common chart, something just did not feel right. Took my 4+% gain in two months and went home. I have until 9/28/18 to reconsider should data support that move.

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