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Sempra Energy (SRE) Q3 Earnings: Stock to Beat Estimates?
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Sempra Energy (SRE - Free Report) will report third-quarter 2016 earnings results before the opening bell on Nov 2.
Last quarter, Sempra Energy recorded a 21% negative earnings surprise. Let’s see how things are shaping up for the third quarter.
Why a Likely Positive Surprise?
Our proven model shows that Sempra Energy is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen and Sempra Energy has the right mix.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +2.06%. This is because the Most Accurate estimate stands at 99 cents, while the Zacks Consensus Estimate is pegged slightly lower at 97 cents. This is a meaningful indicator of a likely positive earnings surprise.Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Sempra Energy’s Zacks Rank #3, when combined with a positive ESP,makes us reasonably confident of an earnings beat this quarter.
Conversely, Sell-rated stocks (#4 or #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Sempra Energy appears well positioned on the back of stable earnings from its utility subsidiaries. Moreover, the company continues to make systematic investments in infrastructure development projects.
Continuing the past few years’ trend, Sempra Energy expects SDG&E to record its best performance in the third quarter, while SoCalGas witnesses a weak third quarter. Management also believes that the hedged inventory that it has been talking about for a long time will be reversedduring the second half of the year.
Other Stocks to Consider
Here are a few other players in the utility space that have the right combination of elements to post an earnings beat this quarter:
ONEOK Inc. (OKE - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3. It is slated to report earnings on Nov 1.
UGI Corporation (UGI - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #3. It is expected to report earnings on Nov 9.
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Sempra Energy (SRE) Q3 Earnings: Stock to Beat Estimates?
Sempra Energy (SRE - Free Report) will report third-quarter 2016 earnings results before the opening bell on Nov 2.
Last quarter, Sempra Energy recorded a 21% negative earnings surprise. Let’s see how things are shaping up for the third quarter.
Why a Likely Positive Surprise?
Our proven model shows that Sempra Energy is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen and Sempra Energy has the right mix.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +2.06%. This is because the Most Accurate estimate stands at 99 cents, while the Zacks Consensus Estimate is pegged slightly lower at 97 cents. This is a meaningful indicator of a likely positive earnings surprise.Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: Sempra Energy’s Zacks Rank #3, when combined with a positive ESP,makes us reasonably confident of an earnings beat this quarter.
Conversely, Sell-rated stocks (#4 or #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
SEMPRA ENERGY Price and EPS Surprise
SEMPRA ENERGY Price and EPS Surprise | SEMPRA ENERGY Quote
Factors to Consider
Sempra Energy appears well positioned on the back of stable earnings from its utility subsidiaries. Moreover, the company continues to make systematic investments in infrastructure development projects.
Continuing the past few years’ trend, Sempra Energy expects SDG&E to record its best performance in the third quarter, while SoCalGas witnesses a weak third quarter. Management also believes that the hedged inventory that it has been talking about for a long time will be reversedduring the second half of the year.
Other Stocks to Consider
Here are a few other players in the utility space that have the right combination of elements to post an earnings beat this quarter:
ONEOK Inc. (OKE - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3. It is slated to report earnings on Nov 1.
UGI Corporation (UGI - Free Report) has an Earnings ESP of +20.00% and a Zacks Rank #3. It is expected to report earnings on Nov 9.
Avista Corp. (AVA - Free Report) is expected to report earnings on Nov 1.It has an Earnings ESP of +4.76% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>