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Sempra Energy (SRE) Q1 Earnings Top Estimates, Revenues Up Y/Y

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Sempra Energy’s (SRE - Free Report) first-quarter 2021 adjusted earnings per share (EPS) came in at $2.95, surpassing the Zacks Consensus Estimate of $2.77 by 6.5%. The bottom line also improved 19.4% from $2.47 in the prior-year quarter.

Barring one-time items, the company generated GAAP earnings of $2.87 per share compared with $2.53 in first-quarter 2020. This year-over-year upside was driven by a solid top-line performance.

Total Revenues

In the quarter under review, total revenues of $3,259 million increased 7.6% year over year on higher contributions from the Utilities business (up 6%) and Energy-related businesses (up 13.7 %). The top line, moreover, exceeded the consensus mark of $3,162 million by 3.1%.

Segment Update

San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $212 million compared with the year-ago quarter’s $262 million.

Southern California Gas Company (SoCalGas): In this segment, quarterly earnings totaled $407 million in the first quarter of 2021 compared with $303 million reported in the prior-year quarter.

Sempra Texas Utility: Earnings in this segment came in at $135 million in the reported quarter compared with $105 million in the year-ago quarter.

Sempra Mexico: The segment recorded net earnings of $57 million compared with $191 million in the year-ago quarter.

Sempra LNG: The segment reported earnings of $146 million compared with the year-ago quarter’s $75 million.

Parent and Other: Quarterly loss in this division declined to $83 million from the year-ago quarter’s loss of $248 million.

Sempra Energy Price, Consensus and EPS Surprise

Financial Update

As of Mar 31, 2021, Sempra Energy’s cash and cash equivalents totaled $725 million compared with $960 million as of Dec 31, 2020.

Long-term debt and finance leases amounted to $22,023 million as of Mar 31, 2021, compared with $21,781 million at 2020-end.

Cash flow from operating activities was $1,502 million at the end of first-quarter 2021, up from $1,318 million at the end of first-quarter 2020.

In the reported quarter, the company’s capital expenditures, investments and acquisitions summed $1,296 million compared with $1,096 million in the first quarter of 2020.

2021 Guidance

Sempra Energy reaffirmed its adjusted EPS guidance for 2021. The company expects to generate earnings of $7.50-$8.10 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.05 per share, which lies toward the higher end of the company-projected range.

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

American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.15, which missed the Zacks Consensus Estimate of $1.23 by 6.5%.

NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2021 adjusted earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 11.7%.

DTE Energy Company (DTE - Free Report) reported first-quarter 2021 operating earnings per share (EPS) of $2.44, which surpassed the Zacks Consensus Estimate of $2.16 by 13%.

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