Back to top

Image: Bigstock

Sempra Energy (SRE) Q2 Earnings Beat, Revenues Improve Y/Y

Read MoreHide Full Article

Sempra Energy’s (SRE - Free Report) second-quarter 2018 adjusted earnings per share (EPS) came in at $1.35, beating the Zacks Consensus Estimate of $1.17 by 15.4%. Earnings also improved 22.7% from the prior-year quarter figure.

Barring one-time items, the company incurred a GAAP loss of $2.11 per share in the quarter, against  earnings of $1.03 in the year-ago quarter.

Total Revenues

In the quarter under review, total revenues were $2,564 million, up 1.2% year over year on higher contributions from its energy-related businesses (up 11.3%). However, total revenues lagged the consensus mark of $2,708 million by 5.3%.

Segment Update

San DiegoGas & Electric (SDG&E): Quarterly earnings came down to $146 million from the year-ago bottom line figure of $149 million.

Southern California Gas Company (SoCalGas): The segment registered earnings of $33 million in the second quarter of 2018, down from the year-ago earnings of $58 million.

Sempra South American Utilities: The segment recorded earnings of $44 million in the second quarter, marginally down from $45 million in the prior-year quarter.

Sempra Mexico: The segment recorded net earnings of $97 million, against the net loss of $9 million recorded in the prior-year quarter. The bottom line deteriorated due to the impairment of Sempra Mexico's Termoeléctrica de Mexicali (TdM) assets that were held for sale until June 2018.

Sempra Renewables: The segment recorded net quarterly loss of $109 million, against the net earnings of $23 million in the prior-year quarter.

Sempra LNG & Midstream: The segment reported a net quarterly loss of $764 million, against the year-ago quarter’s income of $27 million. The bottom line deteriorated due to an impairment of certain non-utility natural gas storage assets in the southeast United States at Sempra LNG & Midstream.

Parent and Other: Quarterly loss rose to $122 million compared with the year-ago loss of $34 million.

Sempra Energy Price, Consensus and EPS Surprise

Sempra Energy Price, Consensus and EPS Surprise | Sempra Energy Quote

Financial Update

As of Jun 30, 2018, Sempra Energy’s cash and cash equivalents were $252 million compared with $288 million as of Dec 31, 2017.

Long-term debt was $21,278 million as of Jun 30, 2018 compared with $16,445 million at 2017 end.

Cash flow from operating activities was $1,629 million at the end of second-quarter 2018, down from $1,889 million at the end of the prior-year period.

In the second quarter, the company’s capital expenditures and investments were $1,112 million compared with $848 million in the prior-year quarter.

Highlight of the Quarter

Sempra Energy, in the second quarter of 2018, raised $1.82 billion in equity offerings. The funds will be used to finance the acquisition of an 80.25% stake in Oncor Electric Delivery Co. with approximately 65% in equity.

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

Xcel Energy (XEL - Free Report) recorded second-quarter 2018 operating earnings of 52 cents per share, beating the Zacks Consensus Estimate of 47 cents by 10.6%. Also, the bottom line was 15.6% higher than the year-ago quarter’s tally.

DTE Energy (DTE - Free Report) reported second-quarter 2018 operating earnings per share of $1.36, which outpaced the Zacks Consensus Estimate of $1.11 by 22.5%.

American Electric Power (AEP - Free Report) reported second-quarter 2018 adjusted earnings per share of $1.01, beating the Zacks Consensus Estimate of 88 cents by 14.8%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

Published in