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Sempra Energy (SRE - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.13, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 3.4% from $1.17 in the prior-year quarter.
Including one-time items, the company generated GAAP earnings of $1.16 per share compared with 69 cents in the fourth quarter of 2022.
For 2023, SRE reported adjusted EPS of $4.61, flat year over year. The full-year bottom line surpassed the Zacks Consensus Estimate of $4.59 by 0.4%.
Total Revenues
Sempra’s total revenues of $3.49 billion improved 1% from $3.46 billion in the year-ago quarter. This was due to lower revenue contributions from the Natural gas and Electric business units. The top line, however, missed the Zacks Consensus Estimate of $4.03 billion by 13.4%.
For 2023, SRE reported total revenues of $16.72 billion, lagging the Zacks Consensus Estimate of $17.26 billion by 3.1%. However, the top line improved 15.8% from $14.44 billion reported in 2022.
Sempra California: Quarterly earnings amounted to $500 million compared with the year-ago quarter’s level of $494 million.
Sempra Texas Utility: Earnings in this segment improved from $132 million in the year-ago quarter to $146 million.
Sempra Infrastructure: The segment recorded earnings of $131 million against a loss of $82 million in the year-ago quarter.
Parent and Other: The segment reported a fourth-quarter loss of $40 million, which was narrower than the prior-year period’s loss of $106 million.
Financial Update
As of Dec 31, 2023, Sempra’s cash and cash equivalents totaled $236 million compared with $370 million as of Dec 31, 2022.
Long-term debt and finance leases amounted to $27.76 billion as of Dec 31, 2023, compared with $24.55 billion as of Dec 31, 2022.
Cash flow from operating activities increased from $1.14 billion in 2022 to $6.22 billion in 2023.
Guidance
Sempra narrowed its 2024 earnings in the range of $4.60-$4.90 per share from $4.55 to $4.90. The Zacks Consensus Estimate for SRE’s 2024 earnings is pegged at $4.84 per share, higher than the midpoint of the company’s projected range.
SRE issued its 2025 earnings in the range of $4.90 to $5.25 per share.
Sempra reiterated its long-term EPS growth rate of 6-8%.
ONE Gas, Inc. (OGS - Free Report) reported fourth-quarter 2023 operating EPS of $1.27 per share, which was on par with the Zacks Consensus Estimate. The bottom line increased 3.2% from the year-ago quarter’s figure of $1.23.
ONE Gas recorded revenues of $605.9 million, which missed the Zacks Consensus Estimate of $815.6 million by 25.7%. The top line also decreased 25.9% from $818.2 million reported in the prior-year period.
FirstEnergy (FE - Free Report) reported fourth-quarter 2023 operating earnings of 62 cents per share, which surpassed the Zacks Consensus Estimate of 60 cents by 3.3%. The bottom line increased 24% from the year-ago quarter’s figure of 50 cents.
Operating revenues of $3.15 billion missed the Zacks Consensus Estimate of $3.29 billion by 4.2%. The top line also declined 0.9% from $3.18 billion recorded in the year-ago quarter.
PG&E Corporation’s (PCG - Free Report) adjusted EPS of 47 cents in the fourth quarter of 2023 surpassed the Zacks Consensus Estimate of 45 cents by 4.4%. The bottom line improved 80.8% from the year-ago quarter’s reported figure.
For the fourth quarter, PCG reported total revenues of $7,041 million compared with $5,370 million in the year-ago quarter. Operating revenues also beat the Zacks Consensus Estimate of $6,431.6 million by 9.5%.
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Sempra (SRE) Q4 Earnings Meet Estimates, Revenues Rise Y/Y
Sempra Energy (SRE - Free Report) reported fourth-quarter 2023 adjusted earnings per share (EPS) of $1.13, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 3.4% from $1.17 in the prior-year quarter.
Including one-time items, the company generated GAAP earnings of $1.16 per share compared with 69 cents in the fourth quarter of 2022.
For 2023, SRE reported adjusted EPS of $4.61, flat year over year. The full-year bottom line surpassed the Zacks Consensus Estimate of $4.59 by 0.4%.
Total Revenues
Sempra’s total revenues of $3.49 billion improved 1% from $3.46 billion in the year-ago quarter. This was due to lower revenue contributions from the Natural gas and Electric business units. The top line, however, missed the Zacks Consensus Estimate of $4.03 billion by 13.4%.
For 2023, SRE reported total revenues of $16.72 billion, lagging the Zacks Consensus Estimate of $17.26 billion by 3.1%. However, the top line improved 15.8% from $14.44 billion reported in 2022.
Sempra Energy Price, Consensus and EPS Surprise
Sempra Energy price-consensus-eps-surprise-chart | Sempra Energy Quote
Segmental Update
Sempra California: Quarterly earnings amounted to $500 million compared with the year-ago quarter’s level of $494 million.
Sempra Texas Utility: Earnings in this segment improved from $132 million in the year-ago quarter to $146 million.
Sempra Infrastructure: The segment recorded earnings of $131 million against a loss of $82 million in the year-ago quarter.
Parent and Other: The segment reported a fourth-quarter loss of $40 million, which was narrower than the prior-year period’s loss of $106 million.
Financial Update
As of Dec 31, 2023, Sempra’s cash and cash equivalents totaled $236 million compared with $370 million as of Dec 31, 2022.
Long-term debt and finance leases amounted to $27.76 billion as of Dec 31, 2023, compared with $24.55 billion as of Dec 31, 2022.
Cash flow from operating activities increased from $1.14 billion in 2022 to $6.22 billion in 2023.
Guidance
Sempra narrowed its 2024 earnings in the range of $4.60-$4.90 per share from $4.55 to $4.90. The Zacks Consensus Estimate for SRE’s 2024 earnings is pegged at $4.84 per share, higher than the midpoint of the company’s projected range.
SRE issued its 2025 earnings in the range of $4.90 to $5.25 per share.
Sempra reiterated its 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
ONE Gas, Inc. (OGS - Free Report) reported fourth-quarter 2023 operating EPS of $1.27 per share, which was on par with the Zacks Consensus Estimate. The bottom line increased 3.2% from the year-ago quarter’s figure of $1.23.
ONE Gas recorded revenues of $605.9 million, which missed the Zacks Consensus Estimate of $815.6 million by 25.7%. The top line also decreased 25.9% from $818.2 million reported in the prior-year period.
FirstEnergy (FE - Free Report) reported fourth-quarter 2023 operating earnings of 62 cents per share, which surpassed the Zacks Consensus Estimate of 60 cents by 3.3%. The bottom line increased 24% from the year-ago quarter’s figure of 50 cents.
Operating revenues of $3.15 billion missed the Zacks Consensus Estimate of $3.29 billion by 4.2%. The top line also declined 0.9% from $3.18 billion recorded in the year-ago quarter.
PG&E Corporation’s (PCG - Free Report) adjusted EPS of 47 cents in the fourth quarter of 2023 surpassed the Zacks Consensus Estimate of 45 cents by 4.4%. The bottom line improved 80.8% from the year-ago quarter’s reported figure.
For the fourth quarter, PCG reported total revenues of $7,041 million compared with $5,370 million in the year-ago quarter. Operating revenues also beat the Zacks Consensus Estimate of $6,431.6 million by 9.5%.