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Sempra (SRE) Q2 Earnings Beat Estimates, Revenues Fall Y/Y
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Sempra Energy’s (SRE - Free Report) reported second-quarter 2023 adjusted earnings per share (EPS) of $1.88, which beat the Zacks Consensus Estimate of $1.72 by 9.3%. The bottom line, however, declined 5.1% from $1.98 in the prior-year quarter.
Considering one-time items, the company generated GAAP earnings of $1.91 per share compared with $1.77 in the second quarter of 2022.
Total Revenues
Sempra’s total revenues of $3,335 million declined 6% from $3,547 million in the year-ago quarter. This was due to lower contribution from the Natural gas, Electric as well as Energy-related business units. The top line also missed the Zacks Consensus Estimate of $3,639 million by 8.3%.
San Diego Gas & Electric: Quarterly earnings amounted to $184 million compared with the year-ago quarter’s level of $174 million.
Southern California Gas Company: The segment reported earnings of $155 million compared with $87 million in the prior-year period.
Sempra Texas Utility: Earnings in this segment declined from $186 million in the year-ago quarter to $160 million.
Sempra Infrastructure: The segment recorded earnings of $208 million compared with $183 million in the year-ago quarter.
Parent and Other: The segment reported second-quarter loss of $104 million, which was wider than the prior-year period’s reported loss of $73 million.
Financial Update
As of Jun 30, 2023, Sempra’s cash and cash equivalents totaled $1,077 million compared with $370 million as of Dec 31, 2022.
Long-term debt and finance leases amounted to $27,521 million as of Jun 30, 2023, compared with $24,548 million as of Dec 31, 2022.
Cash flow from operating activities increased from $2,364 million in the year-ago period to $3,737 million in the reported quarter.
Guidance
Sempra reaffirmed its adjusted EPS guidance for 2023. The company expects to generate earnings in the range of $8.60-$9.20 per share. The Zacks Consensus Estimate for full-year earnings is pegged at $8.93 per share, higher than the midpoint of the company’s guided range.
SRE also reiterated its full-year 2024 earnings in the range of $9.10-$9.80 per share. The Zacks Consensus Estimate for the same is pegged at $9.54 per share, higher than the midpoint of the company’s projected range.
Sempra also anticipates a long-term EPS growth rate of 6-8%.
NextEra Energy (NEE - Free Report) reported second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%. The bottom line was also up 8.6% from the prior-year quarter’s level. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the second quarter, NextEra’s operating revenues totaled $7,349 million, which surpassed the Zacks Consensus Estimate of $6,681 million by 10%. The top line also improved 41.8% year over year.
DTE Energy Company (DTE - Free Report) reported second-quarter 2023 operating EPS of 99 cents, which surpassed the Zacks Consensus Estimate of 89 cents by 11.2%. The bottom line also improved 12.5% from the year-ago quarter’s reported figure of 88 cents.
The company reported GAAP earnings of 97 cents per share compared with 19 cents in the prior-year quarter.
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2023 operating EPS of $1.13, which lagged the Zacks Consensus Estimate of $1.14 by 0.9%. The bottom line also declined 5.8% from $1.20 a year ago.
American Electric’s second-quarter operating revenues of $4,372.5 million lagged the Zacks Consensus Estimate of $4,686.7 million by 6.7%. The reported figure also decreased 5.8% from the year-ago quarter’s level of $4,639.7 million.
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Sempra (SRE) Q2 Earnings Beat Estimates, Revenues Fall Y/Y
Sempra Energy’s (SRE - Free Report) reported second-quarter 2023 adjusted earnings per share (EPS) of $1.88, which beat the Zacks Consensus Estimate of $1.72 by 9.3%. The bottom line, however, declined 5.1% from $1.98 in the prior-year quarter.
Considering one-time items, the company generated GAAP earnings of $1.91 per share compared with $1.77 in the second quarter of 2022.
Total Revenues
Sempra’s total revenues of $3,335 million declined 6% from $3,547 million in the year-ago quarter. This was due to lower contribution from the Natural gas, Electric as well as Energy-related business units. The top line also missed the Zacks Consensus Estimate of $3,639 million by 8.3%.
Sempra Energy Price, Consensus and EPS Surprise
Sempra Energy price-consensus-eps-surprise-chart | Sempra Energy Quote
Segmental Update
San Diego Gas & Electric: Quarterly earnings amounted to $184 million compared with the year-ago quarter’s level of $174 million.
Southern California Gas Company: The segment reported earnings of $155 million compared with $87 million in the prior-year period.
Sempra Texas Utility: Earnings in this segment declined from $186 million in the year-ago quarter to $160 million.
Sempra Infrastructure: The segment recorded earnings of $208 million compared with $183 million in the year-ago quarter.
Parent and Other: The segment reported second-quarter loss of $104 million, which was wider than the prior-year period’s reported loss of $73 million.
Financial Update
As of Jun 30, 2023, Sempra’s cash and cash equivalents totaled $1,077 million compared with $370 million as of Dec 31, 2022.
Long-term debt and finance leases amounted to $27,521 million as of Jun 30, 2023, compared with $24,548 million as of Dec 31, 2022.
Cash flow from operating activities increased from $2,364 million in the year-ago period to $3,737 million in the reported quarter.
Guidance
Sempra reaffirmed its adjusted EPS guidance for 2023. The company expects to generate earnings in the range of $8.60-$9.20 per share. The Zacks Consensus Estimate for full-year earnings is pegged at $8.93 per share, higher than the midpoint of the company’s guided range.
SRE also reiterated its full-year 2024 earnings in the range of $9.10-$9.80 per share. The Zacks Consensus Estimate for the same is pegged at $9.54 per share, higher than the midpoint of the company’s projected range.
Sempra also anticipates a long-term EPS growth rate of 6-8%.
Zacks Rank
Sempra 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
NextEra Energy (NEE - Free Report) reported second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%. The bottom line was also up 8.6% from the prior-year quarter’s level. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the second quarter, NextEra’s operating revenues totaled $7,349 million, which surpassed the Zacks Consensus Estimate of $6,681 million by 10%. The top line also improved 41.8% year over year.
DTE Energy Company (DTE - Free Report) reported second-quarter 2023 operating EPS of 99 cents, which surpassed the Zacks Consensus Estimate of 89 cents by 11.2%. The bottom line also improved 12.5% from the year-ago quarter’s reported figure of 88 cents.
The company reported GAAP earnings of 97 cents per share compared with 19 cents in the prior-year quarter.
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2023 operating EPS of $1.13, which lagged the Zacks Consensus Estimate of $1.14 by 0.9%. The bottom line also declined 5.8% from $1.20 a year ago.
American Electric’s second-quarter operating revenues of $4,372.5 million lagged the Zacks Consensus Estimate of $4,686.7 million by 6.7%. The reported figure also decreased 5.8% from the year-ago quarter’s level of $4,639.7 million.