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Sempra Energy (SRE) Q3 Earnings Top Estimates, Increase Y/Y

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Sempra Energy’s (SRE - Free Report) third-quarter 2018 adjusted earnings per share (EPS) came in at $1.23, beating the Zacks Consensus Estimate of $1.13 by 8.8%. The bottom line also improved 18.3% from $1.04 registered in the prior-year quarter.

Barring one-time items, the company generated GAAP earnings of 99 cents per share, up from 22 cents in third-quarter 2017. This year-over-year upside was driven by solid top-line performance..

Total Revenues

In the quarter under review, total revenues were $2,940 million, up 9.7% year over year on higher contributions from both its Utilities (up 8%) and energy-related businesses (up 19.4%). The top line also surpassed the consensus mark of $2,825 million by 4.1%.

Sempra Energy Price, Consensus and EPS Surprise

Sempra Energy Price, Consensus and EPS Surprise | Sempra Energy Quote

Segment Update

San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $205million againstthe year-ago lossof $28 million.

Southern California Gas Company (SoCalGas): The segment incurred loss of $14 million in the third quarter of 2018 against earnings of $7 million in the prior-year quarter.

Sempra Texas Utility: This segment registered earnings of $154 million in the reported quarter.

Sempra South American Utilities: The segment recorded earnings of $50 million, up from $42 million in third-quarter 2017.

Sempra Mexico: The segment recorded net earnings of $44 million compared with $66 million recorded in the year-ago quarter.

Sempra Renewables: The segment recorded net quarterly earnings of $34million, compared with $15 million in the third quarter last year.

Sempra LNG & Midstream: The segment reported earnings of $16 million against the year-ago quarter’s loss of $4 million.

Parent and Other: Quarterly loss rose to $215 million from the year-ago loss of $41million.

Financial Update

As of Sep 30, 2018, Sempra Energy’s cash and cash equivalents totaled $212 million compared with $288 million as of Dec 31, 2017.

Long-term debt amounted to $21,335 million as of Sep 30, 2018 compared with $16,445 million at 2017 end.

Cash flow from operating activities was $2,591 million at the end of third-quarter 2018, down from $2,704 million at the end of the prior-year period.

In the third quarter, the company’s capital expenditures, investments and acquisitions summed $972 million compared with $1,091 million in the year-ago quarter.

Highlight of the Quarter

In September, Sempra Renewables entered into an agreement to sell all of its U.S. operating solar assets, one U.S. wind generation facility, and its solar and battery storage development projects to a subsidiary of Consolidated Edison (ED - Free Report) for $1.54 billion. The sales process for the other announced asset sales – U.S. wind and U.S. non-utility natural gas storage assets – is in progress.

Zacks Rank

Sempra Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

AES Corporation’s (AES - Free Report) third-quarter 2018 adjusted earnings per share of 35 cents surpassed the Zacks Consensus Estimate of 29 cents by 20.7%. Moreover, the bottom line soared 52.2% from the year-ago period’s figure.

DTE Energy Company (DTE - Free Report) reported third-quarter 2018 operating earnings of $2.13 per share, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.

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