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What's in the Cards for Sempra Energy (SRE) in Q1 Earnings?

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Sempra Energy (SRE - Free Report) is set to report first-quarter 2021 results on May 5, before market open. In the last reported quarter, the company delivered an earnings surprise of 22.58%.

In the trailing four quarters, Sempra Energy came up with an earnings surprise of 10.97%, on average.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Sempra Energy Price and EPS Surprise

Sempra Energy Price and EPS Surprise

Sempra Energy price-eps-surprise | Sempra Energy Quote

 

Factors to Consider

During most part of the first quarter, major parts of the company’s service territories experienced below-normal cold temperatures, accompanied by occasional snowfall as well as rain. Such weather pattern might have spurred electricity demand. This, in turn, is expected to have aided Sempra Energy’s first-quarter top line.

Moreover, favorable rate case approvals in the prior quarters might have also contributed to its revenue growth.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.16 billion, indicating 4.4% rise from the year-ago quarter’s reported figure.

Wildfire has been consistently affecting utility providers operating in the state of California, including Sempra Energy. During the first quarter, the state experienced a handful of such wildfire events, which might have caused power outage along with damage to the utility’s infrastructure. Also a few storms affected the company’s service territory during the first quarter resulting in power outage. These might have increased operating expenses for Sempra Energy during the soon-to-be-reported quarter.  

For the first quarter, the Zacks Consensus Estimate for earnings per share is pegged at $2.60, indicating a decline of 15.6% from the earnings figure reported in the year-ago quarter.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Sempra Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: Sempra Energy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some players from the Utilities sector with the right combination of elements to post an earnings beat in the to-be-reported quarter.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +4.52% and a Zacks Rank #3.

UGI Corp (UGI - Free Report) has an Earnings ESP of +1.74% and a Zacks Rank #3.

Duke Energy (DUK - Free Report) has an Earnings ESP of +0.16% and a Zacks Rank #3.

5 Stocks Set to Double

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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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