It has been about a month since the last earnings report for Sempra (SRE Quick QuoteSRE - Free Report) . Shares have added about 0.3% in that time frame, outperforming the S&P 500.

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

Sempra Energy Q1 Earnings Top Estimates, Revenues Miss

Sempra Energy’s first-quarter 2021 adjusted earnings per share (EPS) came in at $2.95, surpassing the Zacks Consensus Estimate of $2.77 by 6.5%. The bottom line also improved 19.4% from $2.47 in the prior-year quarter.

Barring one-time items, the company generated GAAP earnings of $2.87 per share compared with $2.53 in first-quarter 2020. This year-over-year upside was driven by a solid top-line performance.

Total Revenues

In the quarter under review, total revenues of $3,259 million increased 7.6% year over year on higher contributions from the Utilities business (up 6%) and Energy-related businesses (up 13.7 %). The top line, moreover, missed the consensus mark of $3,162 million by 3.1%.

Segment Update

San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $212 million compared with the year-ago quarter’s $262 million.

Southern California Gas Company (SoCalGas): In this segment, quarterly earnings totaled $407 million in the first quarter of 2021 compared with $303 million reported in the prior-year quarter.

Sempra Texas Utility: Earnings in this segment came in at $135 million in the reported quarter compared with $105 million in the year-ago quarter.

Sempra Mexico: The segment recorded net earnings of $57 million compared with $191 million in the year-ago quarter.

Sempra LNG: The segment reported earnings of $146 million compared with the year-ago quarter’s $75 million.

Parent and Other: Quarterly loss at this division declined to $83 million from the year-ago quarter’s loss of $248 million.

Financial Update

As of Mar 31, 2021, Sempra Energy’s cash and cash equivalents totaled $725 million compared with $960 million, as of Dec 31, 2020.

Long-term debt and finance leases amounted to $22,023 million, as of Mar 31, 2021, compared with $21,781 million at 2020-end.

Cash flow from operating activities was $1,502 million at the end of first-quarter 2021, up from $1,318 million at the end of first-quarter 2020.

In the reported quarter, the company’s capital expenditures, investments and acquisitions summed $1,296 million compared with $1,096 million in the first quarter of 2020.

2021 Guidance

Sempra Energy reaffirmed its adjusted EPS guidance for 2021. The company expects to generate earnings of $7.50-$8.10 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.05 per share, lies at the higher end of the company-projected view.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Sempra has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Sempra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.