Sempra Energy (SRE - Free Report) is slated to report third-quarter 2021 results on Nov 5, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 2.52%. Sempra has a trailing four-quarter earnings surprise of 5.18%, on average.
Factors to Note
During most part of the third quarter, major parts of the company’s service territories experienced dry and warmer-than-normal temperature along with extreme drought conditions. Such weather patterns might have led to increased electricity consumption for cooling purposes, which in turn, may have favored the third-quarter performance.
However, heatwaves during the third quarter resulted in wildfires like the Dixie Fire and KNP complex, which might have damaged the company’s infrastructure and caused outages. This, in turn, might have partially disrupted services of Sempra Energy, and thus may have impacted the quarterly performance.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.82 billion, suggesting growth of 6.7% from the year-ago quarter.
The wildfires are likely to have adversely impacted the utility’s infrastructure. This, in turn, might have pushed up the company’s operating expenses, thereby might get reflected in the third-quarter bottom line.
In August 2021, the company raised its 2021 earnings guidance. This instills further confidence regarding the to-be-reported quarter’s results.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.70 per share, indicating an improvement of 29.8% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Sempra this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here.
Earnings ESP:The company’s Earnings ESP is -0.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sempra currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a couple of Utilities players you may want to consider, as thesehave the right combination of elements to post an earnings beat this season:
Atmos Energy (ATO - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank #3.
Spire (SR - Free Report) has an Earnings ESP of +2.58% and a Zacks Rank #3.
A Recent Utility Release
ONE Gas (OGS - Free Report) reported third-quarter 2021 earnings of 38 cents per share, which matched the Zacks Consensus Estimate.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Sempra Energy (SRE - Free Report) is slated to report third-quarter 2021 results on Nov 5, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 2.52%. Sempra has a trailing four-quarter earnings surprise of 5.18%, on average.
Factors to Note
During most part of the third quarter, major parts of the company’s service territories experienced dry and warmer-than-normal temperature along with extreme drought conditions. Such weather patterns might have led to increased electricity consumption for cooling purposes, which in turn, may have favored the third-quarter performance.
However, heatwaves during the third quarter resulted in wildfires like the Dixie Fire and KNP complex, which might have damaged the company’s infrastructure and caused outages. This, in turn, might have partially disrupted services of Sempra Energy, and thus may have impacted the quarterly performance.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.82 billion, suggesting growth of 6.7% from the year-ago quarter.
The wildfires are likely to have adversely impacted the utility’s infrastructure. This, in turn, might have pushed up the company’s operating expenses, thereby might get reflected in the third-quarter bottom line.
In August 2021, the company raised its 2021 earnings guidance. This instills further confidence regarding the to-be-reported quarter’s results.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.70 per share, indicating an improvement of 29.8% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Sempra this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here.
Earnings ESP:The company’s Earnings ESP is -0.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sempra currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a couple of Utilities players you may want to consider, as thesehave the right combination of elements to post an earnings beat this season:
Atmos Energy (ATO - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank #3.
Spire (SR - Free Report) has an Earnings ESP of +2.58% and a Zacks Rank #3.
A Recent Utility Release
ONE Gas (OGS - Free Report) reported third-quarter 2021 earnings of 38 cents per share, which matched the Zacks Consensus Estimate.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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