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Sempra (SRE) Up 1.3% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Sempra (SRE - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sempra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Sempra Q3 Earnings Miss Estimates, Revenues Decline Y/Y
Sempra Energy reported third-quarter 2024 adjusted earnings per share (EPS) of 89 cents, which missed the Zacks Consensus Estimate by 16%. The figure also declined 17.6% from $1.08 per share reported in the prior-year quarter.
Including one-time items, the company generated GAAP earnings of $1.00 per share compared with $1.14 in the third quarter of 2023.
Total Revenues
Sempra’s total revenues of $2.78 billion declined 16.7% from $3.33 billion in the year-ago quarter. This was due to lower revenue contributions from the Natural gas, Electric and Energy-related business units.
The top line also missed the Zacks Consensus Estimate of $3.83 billion by 27.5%.
Segmental Update
Sempra California: Quarterly earnings amounted to $247 million compared with the year-ago quarter’s level of $290 million.
Sempra Texas Utility: Earnings in this segment declined from $305 million in the year-ago quarter to $261 million.
Sempra Infrastructure: The segment recorded earnings of $230 million compared with $223 million in the year-ago quarter.
Parent and Other: The segment reported a loss of $100 million, wider than the prior-year period’s loss of $97 million.
Financial Update
As of Sept. 30, 2024, Sempra’s cash and cash equivalents totaled $560 million compared with $236 million as of Dec. 31, 2023.
Long-term debt and finance leases amounted to $30.96 billion as of Sept. 30, 2024, compared with $27.76 billion as of Dec. 31, 2023.
Cash flow from operating activities decreased from $5.13 billion in the first nine months of 2023 to $3.54 billion in the first nine months of 2024.
Guidance
Sempra reiterated its 2024 earnings projection in the range of $4.60-$4.90 per share. The Zacks Consensus Estimate is pegged at $4.77 per share, higher than the midpoint of the company’s guided range.
SRE still expects 2025 earnings to be in range of $4.90-$5.25 per share.
The consensus estimate is pegged at $5.13 per share, higher than the midpoint of the company’s guided range.
It continues to expect a long-term EPS growth rate of 6-8%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 6.68% due to these changes.
VGM Scores
At this time, Sempra has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Sempra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Sempra (SRE) Up 1.3% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Sempra (SRE - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Sempra due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Sempra Q3 Earnings Miss Estimates, Revenues Decline Y/Y
Sempra Energy reported third-quarter 2024 adjusted earnings per share (EPS) of 89 cents, which missed the Zacks Consensus Estimate by 16%. The figure also declined 17.6% from $1.08 per share reported in the prior-year quarter.
Including one-time items, the company generated GAAP earnings of $1.00 per share compared with $1.14 in the third quarter of 2023.
Total Revenues
Sempra’s total revenues of $2.78 billion declined 16.7% from $3.33 billion in the year-ago quarter. This was due to lower revenue contributions from the Natural gas, Electric and Energy-related business units.
The top line also missed the Zacks Consensus Estimate of $3.83 billion by 27.5%.
Segmental Update
Sempra California: Quarterly earnings amounted to $247 million compared with the year-ago quarter’s level of $290 million.
Sempra Texas Utility: Earnings in this segment declined from $305 million in the year-ago quarter to $261 million.
Sempra Infrastructure: The segment recorded earnings of $230 million compared with $223 million in the year-ago quarter.
Parent and Other: The segment reported a loss of $100 million, wider than the prior-year period’s loss of $97 million.
Financial Update
As of Sept. 30, 2024, Sempra’s cash and cash equivalents totaled $560 million compared with $236 million as of Dec. 31, 2023.
Long-term debt and finance leases amounted to $30.96 billion as of Sept. 30, 2024, compared with $27.76 billion as of Dec. 31, 2023.
Cash flow from operating activities decreased from $5.13 billion in the first nine months of 2023 to $3.54 billion in the first nine months of 2024.
Guidance
Sempra reiterated its 2024 earnings projection in the range of $4.60-$4.90 per share. The Zacks Consensus Estimate is pegged at $4.77 per share, higher than the midpoint of the company’s guided range.
SRE still expects 2025 earnings to be in range of $4.90-$5.25 per share.
The consensus estimate is pegged at $5.13 per share, higher than the midpoint of the company’s guided range.
It continues to expect a long-term EPS growth rate of 6-8%.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 6.68% due to these changes.
VGM Scores
At this time, Sempra has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Sempra has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.