Back to top

Image: Bigstock

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

Read MoreHide Full Article

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%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>