Sempra Energy’s (SRE - Free Report) third-quarter 2022 adjusted earnings per share (EPS) came in at $1.97, which beat the Zacks Consensus Estimate of $1.79 by 10.1%. The bottom line also increased 15.9% from $1.70 in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $1.53 per share against a loss of $2.03 in the third quarter of 2021.
Total Revenues
In the quarter under review, Sempra’s total revenues of $3,617 million increased 20% year over year on higher contributions from the Natural Gas business (up 26.5%), Electric business (up 4%) as well as Energy-related businesses (up 48.6%). Moreover, the top line exceeded the Zacks Consensus Estimate of $3,306.6 million by 9.4%.
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $271 million compared with the year-ago quarter’s $205 million.
Southern California Gas Company (SoCalGas): The segment incurred a loss of $82 million in the third quarter of 2022 compared with a loss of $1,126 million reported in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $256 million in the reported quarter compared with $206 million in the year-ago quarter.
Sempra Infrastructure: The segment recorded earnings of $114 million compared with $164 million in the year-ago quarter.
Parent and Other: The quarterly loss in this division decreased to $74 million from the year-ago quarter’s loss of $97 million.
Financial Update
As of Sep 30, 2022, Sempra Energy’s cash and cash equivalents totaled $1685 million compared with $559 million as of Dec 31, 2021.
The long-term debt and finance leases amounted to $23,830 million as of Sep 30, 2022 compared with $21,068 million at the 2021-end.
Cash flow from operating activities was $1,455 million during the nine months ended Sep 30, 2022, down from $2,981 million in the year-ago period.
2022 Guidance
Sempra Energy updated its adjusted EPS guidance for 2022. The company now expects to generate earnings in the range of $8.70-$9.00, higher that its prior guidance at the high end of $8.10-$8.70 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.68 per share, lower than the company’s new guidance range.
The company however reiterated its 2023 EPS guidance. SRE continues to expect adjusted earnings in the range of $8.60-$9.20 per share for 2023. The Zacks Consensus Estimate for 2023 earnings stands at $8.93 per share, higher than the midpoint of the company’s guided range.
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
American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2022 operating EPS of $1.62, which beat the Zacks Consensus Estimate of $1.57 by 3.2%. The bottom line also improved 13.3% from $1.43 per share in the year-ago quarter.
American Electric’s third-quarter revenues of $5,486.9 million beat the Zacks Consensus Estimate of $4,985.2 million by 10.1%. The reported figure also improved 21.3% from the year-ago quarter’s $4,522.6 million.
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating EPS of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%. In the trailing twelve-month period, FirstEnergy’s electricity sales improved 1.3% from the prior-year period.
FirstEnergy generated operating revenues of $3,533 million in the third quarter, which surpassed the Zacks Consensus Estimate of $3,190 million by 10.8%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.
The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.
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Sempra Energy’s (SRE - Free Report) third-quarter 2022 adjusted earnings per share (EPS) came in at $1.97, which beat the Zacks Consensus Estimate of $1.79 by 10.1%. The bottom line also increased 15.9% from $1.70 in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $1.53 per share against a loss of $2.03 in the third quarter of 2021.
Total Revenues
In the quarter under review, Sempra’s total revenues of $3,617 million increased 20% year over year on higher contributions from the Natural Gas business (up 26.5%), Electric business (up 4%) as well as Energy-related businesses (up 48.6%). Moreover, the top line exceeded the Zacks Consensus Estimate of $3,306.6 million by 9.4%.
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $271 million compared with the year-ago quarter’s $205 million.
Southern California Gas Company (SoCalGas): The segment incurred a loss of $82 million in the third quarter of 2022 compared with a loss of $1,126 million reported in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $256 million in the reported quarter compared with $206 million in the year-ago quarter.
Sempra Infrastructure: The segment recorded earnings of $114 million compared with $164 million in the year-ago quarter.
Parent and Other: The quarterly loss in this division decreased to $74 million from the year-ago quarter’s loss of $97 million.
Financial Update
As of Sep 30, 2022, Sempra Energy’s cash and cash equivalents totaled $1685 million compared with $559 million as of Dec 31, 2021.
The long-term debt and finance leases amounted to $23,830 million as of Sep 30, 2022 compared with $21,068 million at the 2021-end.
Cash flow from operating activities was $1,455 million during the nine months ended Sep 30, 2022, down from $2,981 million in the year-ago period.
2022 Guidance
Sempra Energy updated its adjusted EPS guidance for 2022. The company now expects to generate earnings in the range of $8.70-$9.00, higher that its prior guidance at the high end of $8.10-$8.70 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.68 per share, lower than the company’s new guidance range.
The company however reiterated its 2023 EPS guidance. SRE continues to expect adjusted earnings in the range of $8.60-$9.20 per share for 2023. The Zacks Consensus Estimate for 2023 earnings stands at $8.93 per share, higher than the midpoint of the company’s guided range.
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
American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2022 operating EPS of $1.62, which beat the Zacks Consensus Estimate of $1.57 by 3.2%. The bottom line also improved 13.3% from $1.43 per share in the year-ago quarter.
American Electric’s third-quarter revenues of $5,486.9 million beat the Zacks Consensus Estimate of $4,985.2 million by 10.1%. The reported figure also improved 21.3% from the year-ago quarter’s $4,522.6 million.
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating EPS of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%. In the trailing twelve-month period, FirstEnergy’s electricity sales improved 1.3% from the prior-year period.
FirstEnergy generated operating revenues of $3,533 million in the third quarter, which surpassed the Zacks Consensus Estimate of $3,190 million by 10.8%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.
The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.
Research Chief 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.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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