Sempra Energy’s ( SRE Quick Quote SRE - Free Report) third-quarter 2020 adjusted earnings per share (EPS) came in at $1.31, which missed the Zacks Consensus Estimate of $1.47 by 10.9%. The bottom line also declined 12.7% from $1.50 reported in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $1.21 per share compared with GAAP earnings of $2.84 reported in third-quarter 2019.
The year-over-year deterioration can be primarily attributed to lower revenues generated in the reported quarter.
In the quarter under review, total revenues of $2,644 million decreased 4.1% year over year on lower contributions from both its Utilities (down 4%) and Energy-related businesses (down 4.7%). The top line, however, surpassed the Zacks Consensus Estimate of $2,604 million by 1.5%.
Segment Update San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $178 million compared with the year-ago quarter’s $263 million. Southern California Gas Company (SoCalGas): This segment incurred loss of $24 million in the third quarter of 2020 against earnings of $143 million registered in the prior-year quarter. Sempra Texas Utility: Earnings in this segment came in at $209 million in the reported quarter compared with $212 million in the year-ago quarter. Sempra Mexico: The segment recorded net earnings of $50 million compared with $84 million in the year-ago quarter. Sempra LNG: The segment reported earnings of $71 million compared with the year-ago quarter’s $2 million. Parent and Other: Quarterly loss at this division declined to $126 million from the year-ago quarter’s loss of $139 million. Financial Update
As of Sep 30, 2020, Sempra Energy’s cash and cash equivalents totaled $3,515 million compared with $108 million as of Dec 31, 2019.
Long-term debt and finance leases amounted to $21,770 million as of Sep 30, 2020, compared with $20,785 million at 2019-end.
Cash flow from operating activities was $1,629 million at the end of third-quarter 2020, down from $2,118 million at the end of third-quarter 2019.
In the reported quarter, the company’s total capital expenditures, investments and acquisitions were $1,204 million compared with $997 million in the third quarter of 2019.
Sempra Energy updated its adjusted EPS guidance for 2020. The company now expects to generate earnings at the high-end of its prior guided range of $7.20-$7.80 per share. The Zacks Consensus Estimate for full-year earnings stands at $7.68 per share, above the midpoint of the company-projected view.
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 Other Utility Releases Entergy ( ETR Quick Quote ETR - Free Report) reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%. American Electric Power ( AEP Quick Quote AEP - Free Report) reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%. NextEra Energy ( NEE Quick Quote NEE - Free Report) reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%. These Stocks Are Poised to Soar Past the Pandemic
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