Sempra Energy’s (SRE - Free Report) fourth-quarter 2016 adjusted earnings per share (EPS) came in at $1.52, beating the Zacks Consensus Estimate of $1.42 by 7%. Earnings also improved 3.4% from the prior-year quarter figure.
GAAP earnings were $1.51 per share in the quarter, compared with $1.47 a year ago.
During 2016, the company’s adjusted EPS of $5.05 exceeded the Zacks Consensus Estimate of $4.85 by 4.1%. On a year-over-year basis, full-year earnings however decreased 2.3%.
Total Revenue
In the quarter under review, total revenue was $2,870 million, up 6.3% year over year on higher contributions from both the energy-related businesses (up 43.7%) and utilities (3%). However, total revenue missed the consensus mark of $2,899 million by 1%.
During 2016, the company’s total revenue of $10.18 billion fell short of the Zacks Consensus Estimate of $10.36 billion by 1.7%. Revenues also dropped 0.5% year over year.
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings were $151 million, compared with the year-ago figure of $144 million. The upside was driven by a higher California Public Utilities Commission (CPUC) base margin and lower operating expenses.
Southern California Gas Company (SoCalGas): The segment registered earnings of $151 million in the fourth quarter of 2016, compared to the year-ago earnings of $143 million. This improvement was driven by a higher CPUC base margin and lower operating expenses as well as increased earnings from the pipeline safety and advanced meter programs.
Sempra South American Utilities: The segment recorded earnings of $29 million in the fourth quarter, down from $46 million in the prior-year quarter. The downside can be attributed to a $14-million increase in deferred income-tax expenses related to the Peruvian tax reform.
Sempra Mexico: The segment recorded earnings of $56 million, up from $53 million recorded in the prior-year quarter.
Sempra Renewables: The segment recorded quarterly earnings of $12 million, down from $16 million in the prior-year quarter. The decline was due to a $5-million gain received from the sale of the Rosamond Solar project in the fourth quarter 2015.
Sempra LNG & Midstream: The segment reported loss of $3 million, as against the year-ago quarter’s earnings of $1 million.
Financial Update
As of Dec 31, 2016, Sempra Energy’s cash and cash equivalents were $349 million, compared with $403 million as of Dec 31, 2015.
Long-term debt was $1,779 million as of Dec 31, 2016, compared with $622 million at 2015-end.
Cash flow from operating activities was $2,319 million at the end of of 2016, down from $2,905 million at the end of 2015.
In 2016, the company’s capital expenditures and investments were $5,796 million, compared with $3,356 million in the prior year.
Guidance
Sempra Energy raised its 2017 earnings per share expectation to the band of $4.85 to $5.25, from the prior range of $4.80 to $5.20.
Zacks Rank
Sempra Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
FirstEnergy Corp. (FE - Free Report) announced fourth-quarter 2016 operating earnings of 38 cents per share, missing the Zacks Consensus Estimate of 39 cents by 2.6%.Quarterly earnings were down 34.5% year over year.
Entergy Corp. (ETR - Free Report) reported fourth-quarter 2016 operational earnings of 31 cents per share, beating the Zacks Consensus Estimate of 11 cents by 181.8%. The reported number, however, declined 80.4% year over year.
Public Service Enterprise Group Inc. (PEG - Free Report) or PSEG reported fourth-quarter 2016 adjusted operating earnings of 54 cents per share, which exceeded the Zacks Consensus Estimate of 52 cents by 3.8%. Earnings also rose 8% on a year-over-year basis.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon.Click to see the stocks right now >>
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 >>
Sempra Energy’s (SRE - Free Report) fourth-quarter 2016 adjusted earnings per share (EPS) came in at $1.52, beating the Zacks Consensus Estimate of $1.42 by 7%. Earnings also improved 3.4% from the prior-year quarter figure.
GAAP earnings were $1.51 per share in the quarter, compared with $1.47 a year ago.
During 2016, the company’s adjusted EPS of $5.05 exceeded the Zacks Consensus Estimate of $4.85 by 4.1%. On a year-over-year basis, full-year earnings however decreased 2.3%.
Total Revenue
In the quarter under review, total revenue was $2,870 million, up 6.3% year over year on higher contributions from both the energy-related businesses (up 43.7%) and utilities (3%). However, total revenue missed the consensus mark of $2,899 million by 1%.
During 2016, the company’s total revenue of $10.18 billion fell short of the Zacks Consensus Estimate of $10.36 billion by 1.7%. Revenues also dropped 0.5% year over year.
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings were $151 million, compared with the year-ago figure of $144 million. The upside was driven by a higher California Public Utilities Commission (CPUC) base margin and lower operating expenses.
Southern California Gas Company (SoCalGas): The segment registered earnings of $151 million in the fourth quarter of 2016, compared to the year-ago earnings of $143 million. This improvement was driven by a higher CPUC base margin and lower operating expenses as well as increased earnings from the pipeline safety and advanced meter programs.
Sempra South American Utilities: The segment recorded earnings of $29 million in the fourth quarter, down from $46 million in the prior-year quarter. The downside can be attributed to a $14-million increase in deferred income-tax expenses related to the Peruvian tax reform.
Sempra Mexico: The segment recorded earnings of $56 million, up from $53 million recorded in the prior-year quarter.
Sempra Renewables: The segment recorded quarterly earnings of $12 million, down from $16 million in the prior-year quarter. The decline was due to a $5-million gain received from the sale of the Rosamond Solar project in the fourth quarter 2015.
Sempra LNG & Midstream: The segment reported loss of $3 million, as against the year-ago quarter’s earnings of $1 million.
Financial Update
As of Dec 31, 2016, Sempra Energy’s cash and cash equivalents were $349 million, compared with $403 million as of Dec 31, 2015.
Long-term debt was $1,779 million as of Dec 31, 2016, compared with $622 million at 2015-end.
Cash flow from operating activities was $2,319 million at the end of of 2016, down from $2,905 million at the end of 2015.
In 2016, the company’s capital expenditures and investments were $5,796 million, compared with $3,356 million in the prior year.
Guidance
Sempra Energy raised its 2017 earnings per share expectation to the band of $4.85 to $5.25, from the prior range of $4.80 to $5.20.
Zacks Rank
Sempra Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
FirstEnergy Corp. (FE - Free Report) announced fourth-quarter 2016 operating earnings of 38 cents per share, missing the Zacks Consensus Estimate of 39 cents by 2.6%.Quarterly earnings were down 34.5% year over year.
Entergy Corp. (ETR - Free Report) reported fourth-quarter 2016 operational earnings of 31 cents per share, beating the Zacks Consensus Estimate of 11 cents by 181.8%. The reported number, however, declined 80.4% year over year.
Public Service Enterprise Group Inc. (PEG - Free Report) or PSEG reported fourth-quarter 2016 adjusted operating earnings of 54 cents per share, which exceeded the Zacks Consensus Estimate of 52 cents by 3.8%. Earnings also rose 8% on a year-over-year basis.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon.Click to see the stocks right now >>
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 >>
Get the latest research report on SRE - FREE
Get the latest research report on ETR - FREE
Get the latest research report on FE - FREE
Get the latest research report on PEG - FREE