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Sempra (SRE) to Post Q4 Earnings: What's in the Offing?

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Sempra Energy (SRE - Free Report) is slated to report fourth-quarter 2021 results on Feb 25 before the opening bell.

In the last reported quarter, the company’s earnings came in line with the Zacks Consensus Estimate. Sempra has a trailing four-quarter earnings surprise of 7.90%, on average.   

Factors to Note

In the October-December 2021 quarter, the majority of the company’s service territories experienced warmer-than-normal temperatures accompanied by slight precipitation. Meanwhile, some parts of its service territories witnessed extreme drought conditions, which may have negatively impacted SRE’s top line.

Also, severe weather accompanied by strong wind gusts and tornadoes during the fourth quarter must have caused damage to the company’s infrastructure, thereby resulting in prolonged outages. This must have impacted its quarterly revenues. Overall, weather conditions may have a mixed impact on revenues of the company in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.31 billion, suggesting growth of 4.5% from the year-ago quarter’s reported figure.

The aforementioned severe weather conditions and tornadoes might have caused damage to the utility’s infrastructure. This, in turn, must have increased the company’s operating expenses, thereby hurting its bottom line in the fourth quarter. However, Sempra’s continuous focus on attaining operational excellence across its business lines may have aided its earnings in the quarter.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.02 per share, indicating an improvement of 6.3% from the prior-year reported figure.

Sempra Energy Price and EPS Surprise

Sempra Energy Price and EPS Surprise

Sempra Energy price-eps-surprise | Sempra Energy Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Sempra this time. 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, which is the case here.

Earnings ESP:SRE’s Earnings ESP is +0.58%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Other Stocks to Consider

Here are Utility players that you may want to consider as thesetoohave the right combination of elements to post an earnings beat this season:

ONEOK, Inc. (OKE - Free Report) has an Earnings ESP of +0.97% and a Zacks Rank #3. ONEOK boasts a long-term earnings growth rate of 7.9%.

The Zacks Consensus Estimate for OKE’s fourth-quarter earnings at 88 cents per share implies a growth rate of 27.5% from the prior-year figure. The Zacks Consensus Estimate for ONEOK’s fourth-quarter sales suggests whopping growth of 152.5% from the prior-year figure.

Public Service Enterprise Group Incorporated (PEG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3.

It boasts a long-term earnings growth rate of 3.6%. The Zacks Consensus Estimate for Public Service Enterprise Group’s fourth-quarter sales and earnings is pegged at $2.50 billion and 68 cents per share, respectively. PEG has a four-quarter average earnings surprise of 4.57%.

American Electric Power Company, Inc. (AEP - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3. American Electric boasts a long-term earnings growth rate of 5.7%.

The Zacks Consensus Estimate for the company’s fourth-quarter sales and earnings is pegged at $4.02 billion and 94 cents per share, respectively. AEP has a four-quarter average earnings surprise of 1.61%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.