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Sempra Energy (SRE) Q3 Earnings Beat, Revenues Rise Y/Y
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Sempra Energy’s (SRE - Free Report) third-quarter 2022 adjusted earnings per share (EPS) came in at $1.97, which beat the Zacks Consensus Estimate of $1.79 by 10.1%. The bottom line also increased 15.9% from $1.70 in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $1.53 per share against a loss of $2.03 in the third quarter of 2021.
Total Revenues
In the quarter under review, Sempra’s total revenues of $3,617 million increased 20% year over year on higher contributions from the Natural Gas business (up 26.5%), Electric business (up 4%) as well as Energy-related businesses (up 48.6%). Moreover, the top line exceeded the Zacks Consensus Estimate of $3,306.6 million by 9.4%.
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $271 million compared with the year-ago quarter’s $205 million.
Southern California Gas Company (SoCalGas): The segment incurred a loss of $82 million in the third quarter of 2022 compared with a loss of $1,126 million reported in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $256 million in the reported quarter compared with $206 million in the year-ago quarter.
Sempra Infrastructure: The segment recorded earnings of $114 million compared with $164 million in the year-ago quarter.
Parent and Other: The quarterly loss in this division decreased to $74 million from the year-ago quarter’s loss of $97 million.
Financial Update
As of Sep 30, 2022, Sempra Energy’s cash and cash equivalents totaled $1685 million compared with $559 million as of Dec 31, 2021.
The long-term debt and finance leases amounted to $23,830 million as of Sep 30, 2022 compared with $21,068 million at the 2021-end.
Cash flow from operating activities was $1,455 million during the nine months ended Sep 30, 2022, down from $2,981 million in the year-ago period.
2022 Guidance
Sempra Energy updated its adjusted EPS guidance for 2022. The company now expects to generate earnings in the range of $8.70-$9.00, higher that its prior guidance at the high end of $8.10-$8.70 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.68 per share, lower than the company’s new guidance range.
The company however 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 $8.93 per share, higher than the midpoint of the company’s guided range.
American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2022 operating EPS of $1.62, which beat the Zacks Consensus Estimate of $1.57 by 3.2%. The bottom line also improved 13.3% from $1.43 per share in the year-ago quarter.
American Electric’s third-quarter revenues of $5,486.9 million beat the Zacks Consensus Estimate of $4,985.2 million by 10.1%. The reported figure also improved 21.3% from the year-ago quarter’s $4,522.6 million.
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating EPS of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%. In the trailing twelve-month period, FirstEnergy’s electricity sales improved 1.3% from the prior-year period.
FirstEnergy generated operating revenues of $3,533 million in the third quarter, which surpassed the Zacks Consensus Estimate of $3,190 million by 10.8%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.
The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.
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Sempra Energy (SRE) Q3 Earnings Beat, Revenues Rise Y/Y
Sempra Energy’s (SRE - Free Report) third-quarter 2022 adjusted earnings per share (EPS) came in at $1.97, which beat the Zacks Consensus Estimate of $1.79 by 10.1%. The bottom line also increased 15.9% from $1.70 in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $1.53 per share against a loss of $2.03 in the third quarter of 2021.
Total Revenues
In the quarter under review, Sempra’s total revenues of $3,617 million increased 20% year over year on higher contributions from the Natural Gas business (up 26.5%), Electric business (up 4%) as well as Energy-related businesses (up 48.6%). Moreover, the top line exceeded the Zacks Consensus Estimate of $3,306.6 million by 9.4%.
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 $271 million compared with the year-ago quarter’s $205 million.
Southern California Gas Company (SoCalGas): The segment incurred a loss of $82 million in the third quarter of 2022 compared with a loss of $1,126 million reported in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $256 million in the reported quarter compared with $206 million in the year-ago quarter.
Sempra Infrastructure: The segment recorded earnings of $114 million compared with $164 million in the year-ago quarter.
Parent and Other: The quarterly loss in this division decreased to $74 million from the year-ago quarter’s loss of $97 million.
Financial Update
As of Sep 30, 2022, Sempra Energy’s cash and cash equivalents totaled $1685 million compared with $559 million as of Dec 31, 2021.
The long-term debt and finance leases amounted to $23,830 million as of Sep 30, 2022 compared with $21,068 million at the 2021-end.
Cash flow from operating activities was $1,455 million during the nine months ended Sep 30, 2022, down from $2,981 million in the year-ago period.
2022 Guidance
Sempra Energy updated its adjusted EPS guidance for 2022. The company now expects to generate earnings in the range of $8.70-$9.00, higher that its prior guidance at the high end of $8.10-$8.70 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.68 per share, lower than the company’s new guidance range.
The company however 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 $8.93 per share, higher than 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.
Recent Utility Releases
American Electric Power Company, Inc. (AEP - Free Report) reported third-quarter 2022 operating EPS of $1.62, which beat the Zacks Consensus Estimate of $1.57 by 3.2%. The bottom line also improved 13.3% from $1.43 per share in the year-ago quarter.
American Electric’s third-quarter revenues of $5,486.9 million beat the Zacks Consensus Estimate of $4,985.2 million by 10.1%. The reported figure also improved 21.3% from the year-ago quarter’s $4,522.6 million.
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating EPS of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%. In the trailing twelve-month period, FirstEnergy’s electricity sales improved 1.3% from the prior-year period.
FirstEnergy generated operating revenues of $3,533 million in the third quarter, which surpassed the Zacks Consensus Estimate of $3,190 million by 10.8%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2022 operating EPS of $1.60, which surpassed the Zacks Consensus Estimate of $1.58 by 1.3%. However, the bottom line decreased 7% from the year-ago quarter’s $1.72 per share.
The operating net income of DTE in the reported quarter totaled $311 million compared with $334 million in the year-ago quarter.