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What's in the Cards for Sempra Energy (SRE) in Q3 Earnings?
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Sempra Energy (SRE - Free Report) is slated to report third-quarter 2022 results on Nov 3 before the opening bell.
In the last reported quarter, the company reported an earnings surprise of 8.79%. Sempra Energy has a trailing four-quarter earnings surprise of 4.37%, on average.
Factors to Note
In the third quarter, Sempra Energy’s service territories witnessed warmer-than-normal temperatures accompanied by drought conditions in most regions. Such weather patterns are likely to have boosted the electricity demand for cooling purposes among the company’s customers. This is expected to have contributed to revenues in the soon-to-be-reported quarter.
However, some parts of its service territories experienced severe weather conditions, along with torrential rains and flooding. These may have dampened the smooth flow of electricity to its customers, thus adversely impacting the overall revenues of the company in the third quarter of 2022.
Meanwhile, new requests for transmission interconnections in Oncor are likely to have favorably impacted Sempra Energy’s third-quarter top line. Also, a positive impact of the rate revision may have added impetus to third-quarter revenues.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $3.40 billion, suggesting growth of 12.7% from the year-ago quarter’s reported figure.
From the cost perspective, the aforementioned severe weather conditions might have caused infrastructural damage for Sempra Energy, thus pushing up the operating expenses of the company to repair the same. This might have hurt the bottom line in the third quarter.
However, increased revenues from rate updates reflecting increased invested capital, as well as higher customer consumption and customer growth, are likely to have contributed to its overall third-quarter earnings.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.90 per share, indicating growth of 11.8% from the prior-year reported figure.
Our proven model does not conclusively predict an earnings beat for SRE 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. However, that is not the case here.
Earnings ESP: The company’s Earnings ESP is -6.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:
Ameren Corporation (AEE - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #3. The Zacks Consensus Estimate for Ameren’s third-quarter earnings is pegged at $1.72 per share, suggesting growth of 4.2% from the year-ago quarter.
The Zacks Consensus Estimate for AEE’s third-quarter sales is pegged at $1.90 billion, indicating growth of 4.9% from the prior-year reported figure.
Spire (SR - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #3. The Zacks Consensus Estimate for Spire’s third-quarter loss is pegged at 64 cents per share, suggesting a deterioration from the year-ago quarter.
The Zacks Consensus Estimate for SR’s third-quarter sales is pegged at $280.9 million, implying a decline of 3.2% from the prior-year reported figure.
Northwest Natural Holding Company (NWN - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank #3. The Zacks Consensus Estimate for Northwest’s third-quarter loss is pegged at 75 cents per share, suggesting a deterioration from the year-ago quarter.
The Zacks Consensus Estimate for NWN’s third-quarter sales is pegged at $105.9 million, implying growth of 4.4% from the prior-year reported figure.
Image: Bigstock
What's in the Cards for Sempra Energy (SRE) in Q3 Earnings?
Sempra Energy (SRE - Free Report) is slated to report third-quarter 2022 results on Nov 3 before the opening bell.
In the last reported quarter, the company reported an earnings surprise of 8.79%. Sempra Energy has a trailing four-quarter earnings surprise of 4.37%, on average.
Factors to Note
In the third quarter, Sempra Energy’s service territories witnessed warmer-than-normal temperatures accompanied by drought conditions in most regions. Such weather patterns are likely to have boosted the electricity demand for cooling purposes among the company’s customers. This is expected to have contributed to revenues in the soon-to-be-reported quarter.
However, some parts of its service territories experienced severe weather conditions, along with torrential rains and flooding. These may have dampened the smooth flow of electricity to its customers, thus adversely impacting the overall revenues of the company in the third quarter of 2022.
Meanwhile, new requests for transmission interconnections in Oncor are likely to have favorably impacted Sempra Energy’s third-quarter top line. Also, a positive impact of the rate revision may have added impetus to third-quarter revenues.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $3.40 billion, suggesting growth of 12.7% from the year-ago quarter’s reported figure.
From the cost perspective, the aforementioned severe weather conditions might have caused infrastructural damage for Sempra Energy, thus pushing up the operating expenses of the company to repair the same. This might have hurt the bottom line in the third quarter.
However, increased revenues from rate updates reflecting increased invested capital, as well as higher customer consumption and customer growth, are likely to have contributed to its overall third-quarter earnings.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.90 per share, indicating growth of 11.8% from the prior-year reported figure.
Sempra Energy Price and EPS Surprise
Sempra Energy price-eps-surprise | Sempra Energy Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for SRE 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. However, that is not the case here.
Earnings ESP: The company’s Earnings ESP is -6.12%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Sempra Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three utilities you may want to consider as these have the right combination of elements to post an earnings beat this season:
Ameren Corporation (AEE - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #3. The Zacks Consensus Estimate for Ameren’s third-quarter earnings is pegged at $1.72 per share, suggesting growth of 4.2% from the year-ago quarter.
The Zacks Consensus Estimate for AEE’s third-quarter sales is pegged at $1.90 billion, indicating growth of 4.9% from the prior-year reported figure.
Spire (SR - Free Report) has an Earnings ESP of +2.36% and a Zacks Rank #3. The Zacks Consensus Estimate for Spire’s third-quarter loss is pegged at 64 cents per share, suggesting a deterioration from the year-ago quarter.
The Zacks Consensus Estimate for SR’s third-quarter sales is pegged at $280.9 million, implying a decline of 3.2% from the prior-year reported figure.
Northwest Natural Holding Company (NWN - Free Report) has an Earnings ESP of +2.01% and a Zacks Rank #3. The Zacks Consensus Estimate for Northwest’s third-quarter loss is pegged at 75 cents per share, suggesting a deterioration from the year-ago quarter.
The Zacks Consensus Estimate for NWN’s third-quarter sales is pegged at $105.9 million, implying growth of 4.4% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.