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Why Is Sempra (SRE) Up 11% Since Last Earnings Report?
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It has been about a month since the last earnings report for Sempra (SRE - Free Report) . Shares have added about 11% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sempra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Sempra Energy Q4 Earnings Beat Estimates, Revenues Up Y/Y
Sempra Energy’s fourth-quarter 2020 earnings per share (EPS) came in at $1.90, which surpassed the Zacks Consensus Estimate of $1.55 by 22.6%. Moreover, the bottom line increased 22.6% from $1.55 registered in the prior-year quarter.
The year-over-year downside can be attributed to the absence of gains from the sale of assets, which the company had witnessed in the year-ago comparable period.
For 2020, the company generated adjusted EPS of $8.03, up from $6.78 at the end of 2019. The full-year bottom line beat the Zacks Consensus Estimate of $7.69 by 4.4%.
Total Revenues
In the quarter under review, total revenues of $3,171 million increased 7.7.% year over year on higher contributions from its Utilities (up 7%) and Energy-related (up 13.9%) businesses. The top line, moreover, exceeded the consensus mark of $2,946 million by 7.6%.
For 2020, Sempra Energy recorded revenues of $11.37 billion, up 5% from the prior year’s figure. The full-year top line also exceeded the consensus mark of $11.05 billion by 2.9%.
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $191 million compared with the year-ago quarter’s $185 million.
Southern California Gas Company (SoCalGas): In this segment, earnings totaled $79 million in the fourth quarter of 2020 compared with $204 million registered in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $121 million in the reported quarter compared with $109 million in the year-ago quarter.
Sempra Mexico: The segment recorded net losses of $43 million against $39 million of earnings in the year-ago quarter.
Sempra LNG: The segment reported earnings of $113 million in the reported quarter against the year-ago quarter’s reported loss of $19 million.
Parent and Other: Quarterly loss in this division narrowed to $47 million from the year-ago quarter’s loss of $132 million.
Financial Update
As of Dec 31, 2020, Sempra Energy’s cash and cash equivalents totaled $960 million compared with $108 million as of Dec 31, 2019.
Long-term debt and finance leases amounted to $21,781 million as of Dec 31, 2020, compared with $20,785 million at 2019-end.
Cash flow from operating activities was $2,591 million at the end of 2020, down from $3,088 million at the end of 2019.
The company’s total capital expenditures, investments and acquisitions were $5,328 million in 2020 compared with $5,505 million in 2019.
2021 Guidance
Sempra Energy reiterated its earnings guidance for 2021. The company continues to expect earnings of $7.50-$8.10 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.09, which lies well above the midpoint of the projected view.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -9.67% due to these changes.
VGM Scores
Currently, Sempra has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Sempra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Sempra (SRE) Up 11% Since Last Earnings Report?
It has been about a month since the last earnings report for Sempra (SRE - Free Report) . Shares have added about 11% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sempra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Sempra Energy Q4 Earnings Beat Estimates, Revenues Up Y/Y
Sempra Energy’s fourth-quarter 2020 earnings per share (EPS) came in at $1.90, which surpassed the Zacks Consensus Estimate of $1.55 by 22.6%. Moreover, the bottom line increased 22.6% from $1.55 registered in the prior-year quarter.
The year-over-year downside can be attributed to the absence of gains from the sale of assets, which the company had witnessed in the year-ago comparable period.
For 2020, the company generated adjusted EPS of $8.03, up from $6.78 at the end of 2019. The full-year bottom line beat the Zacks Consensus Estimate of $7.69 by 4.4%.
Total Revenues
In the quarter under review, total revenues of $3,171 million increased 7.7.% year over year on higher contributions from its Utilities (up 7%) and Energy-related (up 13.9%) businesses. The top line, moreover, exceeded the consensus mark of $2,946 million by 7.6%.
For 2020, Sempra Energy recorded revenues of $11.37 billion, up 5% from the prior year’s figure. The full-year top line also exceeded the consensus mark of $11.05 billion by 2.9%.
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $191 million compared with the year-ago quarter’s $185 million.
Southern California Gas Company (SoCalGas): In this segment, earnings totaled $79 million in the fourth quarter of 2020 compared with $204 million registered in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $121 million in the reported quarter compared with $109 million in the year-ago quarter.
Sempra Mexico: The segment recorded net losses of $43 million against $39 million of earnings in the year-ago quarter.
Sempra LNG: The segment reported earnings of $113 million in the reported quarter against the year-ago quarter’s reported loss of $19 million.
Parent and Other: Quarterly loss in this division narrowed to $47 million from the year-ago quarter’s loss of $132 million.
Financial Update
As of Dec 31, 2020, Sempra Energy’s cash and cash equivalents totaled $960 million compared with $108 million as of Dec 31, 2019.
Long-term debt and finance leases amounted to $21,781 million as of Dec 31, 2020, compared with $20,785 million at 2019-end.
Cash flow from operating activities was $2,591 million at the end of 2020, down from $3,088 million at the end of 2019.
The company’s total capital expenditures, investments and acquisitions were $5,328 million in 2020 compared with $5,505 million in 2019.
2021 Guidance
Sempra Energy reiterated its earnings guidance for 2021. The company continues to expect earnings of $7.50-$8.10 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.09, which lies well above the midpoint of the projected view.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -9.67% due to these changes.
VGM Scores
Currently, Sempra has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Sempra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.