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Sempra Energy (SRE) Q1 Earnings Beat, Revenues Rise Y/Y

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Sempra Energy’s (SRE - Free Report) first-quarter 2022 adjusted earnings per share (EPS) came in at $2.91, which beat the Zacks Consensus Estimate of $2.86 by 1.8%. However, the bottom line declined by 1.4% from $2.95 in the prior-year quarter.

Barring one-time items, the company generated GAAP earnings of $1.93 per share compared with $2.87 in the first quarter of 2021.

Total Revenues

In the quarter under review, total revenues of $3,820 million increased 17.2% year over year on higher contributions from the Natural Gas business (up 30.6%) and Electric businesses (up 4.6%). Moreover, the top line exceeded the Zacks consensus estimate of $3,446.7 million by 10.8%.

Sempra Energy Price, Consensus and EPS Surprise

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 $234 million compared with the year-ago quarter’s $212 million.

Southern California Gas Company (SoCalGas): The segment’s earnings came in at $334 million in the first quarter of 2022 compared with the $407 million reported in the prior-year quarter.

Sempra Texas Utility: Earnings in this segment came in at $162 million in the reported quarter compared with $135 million in the year-ago quarter.

Sempra Infrastructure: The segment recorded earnings of $95 million compared with $202 million in the year-ago quarter.

Parent and Other: The quarterly loss in this division increased to $213 million from the year-ago quarter’s loss of $82 million.

Financial Update

As of Mar 31, 2022, Sempra Energy’s cash and cash equivalents totaled $2,519 million compared with $559 million as of Dec 31, 2021.

The long-term debt and finance leases amounted to $24,416 million as of Mar 31, 2022 compared with $21,068 million at the 2021-end.

Cash flow from the operating activities was $1,607 million at the end of the first quarter of 2022, up from $1,502 million at the end of first-quarter 2021.

2022 Guidance

Sempra Energy reaffirmed its adjusted EPS guidance for 2022. The company expects to generate earnings in the range of $8.10-$8.70 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.47 per share, higher than the midpoint of the company’s guided range.

The company also reiterated its 2023 EPS guidance. SRE continues to expect adjusted earnings in the range of $8.60-$9.20 per share for 2023. The Zacks Consensus Estimate for 2023 earnings stands at $8.90 per share, in line with the midpoint of the company’s guided 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.

Utility Releases

CenterPoint Energy (CNP - Free Report) reported first-quarter 2022 adjusted earnings of 47 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line declined by 20.3% from the year-ago quarter’s figure.

In the first quarter of 2022, CenterPoint Energy generated revenues worth $2,763 million, up 8.5% from the year-ago figure. CNP’s revenues beat the Zacks Consensus Estimate of $2.559.4 million by 8%.

NextEra Energy (NEE - Free Report) reported first-quarter 2022 adjusted earnings of 74 cents per share, which beat the Zacks Consensus Estimate of 69 cents by 7.3%. The bottom line was also up 10.5% from the prior-year quarter.

NextEra Energy’soperating revenues were $2,890 million, which lagged the Zacks Consensus Estimate of $5,178 million by 44.2%. NEE’s top line also decreased by 22.4% year over year.

Entergy Corporation (ETR - Free Report) reported first-quarter 2022 adjusted earnings of $1.32 per share, which missed the Zacks Consensus Estimate of $1.38 by 4.3%. The reported figure also declined by 10.2% from $1.47 per share in the year-ago quarter.

Entergy’s first-quarter revenues of $2.88 billion exceeded the Zacks Consensus Estimate of $2.75 billion by 4.8%. As of Mar 31, 2022, ETR had cash and cash equivalents of $701.6 million compared with $442.6 million as of Dec 31, 2021.