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Sempra Energy (SRE) Q2 Earnings Miss, Revenues Improve Y/Y

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Sempra Energy’s (SRE - Free Report) second-quarter 2020 adjusted earnings per share (EPS) came in at $1.65, which missed the Zacks Consensus Estimate of $1.66 by 0.6%. The bottom line, however, soared 50% from $1.10 reported in the prior-year quarter.

Barring one-time items, the company generated GAAP earnings of $7.61 per share compared with GAAP earnings of $1.26 reported in second-quarter 2019.

Total Revenues

In the quarter under review, total revenues of $2,526 million increased 13.3% year over year on higher contributions from its Utilities (up 17.8%) business. The top line, however, missed the consensus mark of $2,663 million by 5.1%.

Segment Update

San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $193 million compared with the year-ago quarter’s $143 million.

Southern California Gas Company (SoCalGas): In this segment, earnings totaled $146 million in the second quarter of 2020 compared with $30 million registered in the prior-year quarter.

Sempra Texas Utility: Earnings in this segment came in at $144 million in the reported quarter compared with $113 million in the year-ago quarter.

Sempra Mexico: The segment recorded net earnings of $61 million compared with $73 million in the year-ago quarter.

Sempra LNG: The segment reported earnings of $61 million compared with the year-ago quarter’s $6 million.

Parent and Other: Quarterly loss at this division rose to $141 million from the year-ago quarter’s loss of $127 million.

Sempra Energy Price, Consensus and EPS Surprise

As of Jun 30, 2020, Sempra Energy’s cash and cash equivalents totaled $4,894 million compared with $108 million as of Dec 31, 2019.

Long-term debt and finance leases amounted to $20,535 million as of Jun 30, 2020, compared with $20,785 million at 2019-end.

Cash flow from operating activities was $1,027 million at the end of second-quarter 2020, down from $1,704 million at the end of second-quarter 2019.

In the reported quarter, the company’s total capital expenditures, investments and acquisitions summed $1,242 million compared with $2,165 million in the second quarter of 2019.

2020 Guidance

Sempra Energy updated its adjusted EPS guidance for 2020. The company expects to generate earnings of $7.20-$7.80 per share. The Zacks Consensus Estimate for full-year earnings stands at $7.54 per share, above the midpoint of the company-projected view.

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

NextEra Energy (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, surpassing the Zacks Consensus Estimate of $2.50 by 4.4%.

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.

CMS Energy Corporation (CMS - Free Report) reported second-quarter 2020 adjusted earnings per share of 49 cents, which surpassed the Zacks Consensus Estimate of 45 cents by 8.9%.

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