Global Partners (NYSE:GLP) Announces Quarterly Earnings Results, Misses Expectations By $0.35 EPS

Global Partners (NYSE:GLP) announced its quarterly earnings results on Friday. The energy company reported $1.26 EPS for the quarter, missing the consensus estimate of $1.61 by ($0.35), FiscalAI reports. Global Partners had a net margin of 0.91% and a return on equity of 30.87%. The company had revenue of $6.68 billion during the quarter, compared to analyst estimates of $7.41 billion.

Here are the key takeaways from Global Partners’ conference call:

• Profitability and cash flow improved: Third-quarter adjusted EBITDA rose to $122.9 million from $98.8 million a year earlier, while adjusted distributable cash flow increased to $70.3 million from $53.3 million.
• Wholesale strength more than offset retail weakness: Wholesale product margin increased $33.4 million to $111.4 million on more favorable market conditions, while GDSO product margin fell $8.3 million, primarily because of lower gasoline volumes.
• Higher retail fuel prices weighed on customer fuel consumption and gasoline distribution volumes. Management also expects steep backwardation in forward pricing to raise the cost of carrying hedged inventory in future periods.
• Distribution increased for the 20th consecutive quarter to $0.785 per unit, or $3.14 annualized; quarter-end distribution coverage was 2.3 times.
• The company reported leverage of approximately 2.8 times, redeemed its $75 million of Series B preferred units, and extended its credit agreement maturity to October 2031. It raised its 2026 maintenance capital expenditure outlook by $5 million, to $65 million–$75 million.

Global Partners Price Performance

Global Partners stock traded up $2.46 during trading hours on Friday, hitting $44.13. 160,159 shares of the stock were exchanged, compared to its average volume of 53,423. The company has a debt-to-equity ratio of 2.44, a quick ratio of 0.71 and a current ratio of 1.19. The stock has a market capitalization of $1.50 billion, a P/E ratio of 8.99 and a beta of 1.10. Global Partners has a 12 month low of $39.58 and a 12 month high of $54.29. The business’s 50-day moving average is $48.87 and its two-hundred day moving average is $47.97.

Global Partners Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Monday, November 9th will be paid a dividend of $0.7850 per share. This is a positive change from Global Partners’s previous quarterly dividend of $0.78. This represents a $3.14 annualized dividend and a yield of 7.1%. The ex-dividend date of this dividend is Monday, November 9th. Global Partners’s payout ratio is currently 63.54%.

Wall Street Analyst Weigh In

Several research analysts have issued reports on GLP shares. Wall Street Zen lowered Global Partners from a “strong-buy” rating to a “buy” rating in a research note on Saturday. Weiss Ratings raised Global Partners from a “buy (b-)” rating to a “buy (b)” rating in a report on Monday, September 28th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $46.00.

About Global Partners

Global Partners LP (NYSE: GLP) is an integrated energy company that owns, supplies, stores, transports and markets energy products. The company’s activities include the wholesale distribution of gasoline, diesel, distillates, residual oil, renewable fuels and other petroleum products, as well as the terminaling and storage of these products.

Global Partners serves customers primarily across the northeastern and mid-Atlantic United States. Its wholesale operations supply gasoline stations, commercial and industrial users, utilities, distributors and other energy customers.