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Sempra Energy (SRE) Q3 Earnings In Line, Revenues Rise Y/Y
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Sempra Energy’s (SRE - Free Report) third-quarter 2021 adjusted earnings per share (EPS) came in at $1.70, in line with the Zacks Consensus Estimate. The bottom line improved 14.1% from $1.49 in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $2.03 per share compared with $1.21 in third-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 $3,013 million increased 14% year over year on higher contributions from both Utilities business (up 11.3%) and Energy-related businesses (up 32.1%). The top line, moreover, exceeded the consensus mark of $2,821 million by 6.8%.
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $205 million compared with the year-ago quarter’s $178 million.
Southern California Gas Company (SoCalGas): This segment incurred a loss of $1,126 million in the third quarter of 2021 compared with a loss of $24 million reported in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $206 million in the reported quarter compared with $209 million in the year-ago quarter.
Sempra Mexico: The segment recorded net earnings of $164 million compared with $50 million in the year-ago quarter.
Sempra LNG: The segment reported earnings of $1 million compared with the year-ago quarter’s $71 million.
Parent and Other: Quarterly loss in this division declined to $98 million from the year-ago quarter’s loss of $126 million.
Financial Update
As of Sep 30, 2021, Sempra Energy’s cash and cash equivalents totaled $873 million compared with $960 million as of Dec 31, 2020.
Long-term debt and finance leases amounted to $20,042 million as of Sep 30, 2021, compared with $21,781 million at 2020-end.
Cash flow from operating activities was $2,981 million at the end of third-quarter 2021, up from $1,629 million at the end of third-quarter 2020.
In the reported quarter, the company’s capital expenditures, investments and acquisitions were $1,233 million compared with $1,204 million in the third quarter of 2020.
2021 Guidance
Sempra Energy has updated its adjusted EPS guidance for 2021. The company now expects to generate earnings at the higher end of the range of $7.75-$8.35 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.23 per share.
American Electric Power (AEP - Free Report) reported third-quarter 2021 adjusted earnings per share of $1.43, which missed the Zacks Consensus Estimate of $1.44 by 0.7%.
NextEra Energy (NEE - Free Report) reported third-quarter 2021 adjusted earnings of 75 cents per share, which exceeded the Zacks Consensus Estimate of 72 cents by 4.2%.
Ameren Corporation’s (AEE - Free Report) third-quarter 2021 earnings of $1.65 per share from continuing operations exceeded the Zacks Consensus Estimate of $1.62 by 1.9%.
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Sempra Energy (SRE) Q3 Earnings In Line, Revenues Rise Y/Y
Sempra Energy’s (SRE - Free Report) third-quarter 2021 adjusted earnings per share (EPS) came in at $1.70, in line with the Zacks Consensus Estimate. The bottom line improved 14.1% from $1.49 in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $2.03 per share compared with $1.21 in third-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 $3,013 million increased 14% year over year on higher contributions from both Utilities business (up 11.3%) and Energy-related businesses (up 32.1%). The top line, moreover, exceeded the consensus mark of $2,821 million by 6.8%.
Sempra Energy Price, Consensus and EPS Surprise
Sempra Energy price-consensus-eps-surprise-chart | Sempra Energy Quote
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $205 million compared with the year-ago quarter’s $178 million.
Southern California Gas Company (SoCalGas): This segment incurred a loss of $1,126 million in the third quarter of 2021 compared with a loss of $24 million reported in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $206 million in the reported quarter compared with $209 million in the year-ago quarter.
Sempra Mexico: The segment recorded net earnings of $164 million compared with $50 million in the year-ago quarter.
Sempra LNG: The segment reported earnings of $1 million compared with the year-ago quarter’s $71 million.
Parent and Other: Quarterly loss in this division declined to $98 million from the year-ago quarter’s loss of $126 million.
Financial Update
As of Sep 30, 2021, Sempra Energy’s cash and cash equivalents totaled $873 million compared with $960 million as of Dec 31, 2020.
Long-term debt and finance leases amounted to $20,042 million as of Sep 30, 2021, compared with $21,781 million at 2020-end.
Cash flow from operating activities was $2,981 million at the end of third-quarter 2021, up from $1,629 million at the end of third-quarter 2020.
In the reported quarter, the company’s capital expenditures, investments and acquisitions were $1,233 million compared with $1,204 million in the third quarter of 2020.
2021 Guidance
Sempra Energy has updated its adjusted EPS guidance for 2021. The company now expects to generate earnings at the higher end of the range of $7.75-$8.35 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.23 per share.
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 (AEP - Free Report) reported third-quarter 2021 adjusted earnings per share of $1.43, which missed the Zacks Consensus Estimate of $1.44 by 0.7%.
NextEra Energy (NEE - Free Report) reported third-quarter 2021 adjusted earnings of 75 cents per share, which exceeded the Zacks Consensus Estimate of 72 cents by 4.2%.
Ameren Corporation’s (AEE - Free Report) third-quarter 2021 earnings of $1.65 per share from continuing operations exceeded the Zacks Consensus Estimate of $1.62 by 1.9%.