Sempra Energy’s (SRE - Free Report) second-quarter 2019 adjusted earnings per share (EPS) came in at $1.10, which missed the Zacks Consensus Estimate of $1.19 by 7.8%. The bottom line also declined 18.5% from $1.35 registered in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $1.26 per share against a loss of $2.11 incurred in second-quarter 2018. This year-over-year downside can be attributed to the absence of benefits from its U.S. solar, wind and certain non-utility natural gas storage assets, which the company sold this April.
In the quarter under review, total revenues of $2,230 million increased 2.5% year over year on higher contributions from its Utilities (up 4.1%) business. The top line, however, missed the consensus mark of $2,318 million by 3.8%.
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $143 million compared with the year-ago quarter’s $146 million.
Southern California Gas Company (SoCalGas): At this segment, quarterly earnings totaled $30 million in the second quarter of 2019 compared with $33 million registered in the prior-year quarter.
Sempra Texas Utility: Earnings at this segment came in at $113 million in the reported quarter compared with $114 million in the year-ago quarter.
Sempra Mexico: The segment recorded net earnings of $73 million compared with $97 million in the year-ago quarter.
Sempra Renewables: The segment recorded net quarterly earnings of $43 million against a loss of $109 million incurred in the second quarter of 2018.
Sempra LNG: The segment reported earnings of $6 million against the year-ago quarter’s loss of $764 million.
Parent and Other: Quarterly loss at this division rose to $127 million from the year-ago quarter’s loss of $126 million.
As of Jun 30, 2019, Sempra Energy’s cash and cash equivalents totaled $168 million compared with $102 million as of Dec 31, 2018.
Long-term debt and finance leases amounted to $21,199 million as of Jun 30, 2019, compared with $20,903 million at 2018 end.
Cash flow from operating activities was $1,704 million at the end of second-quarter 2019, up from $1,673 million at the end of second-quarter 2018.
In the reported quarter, the company’s total capital expenditures, investments and acquisitions summed $2,165 million compared with $1,061 million in the second quarter of 2018.
Highlights of the Quarter
To enhance its LNG development projects, Sempra LNG signed a heads of agreement (HOA) with Aramco Services Company in May. The HOA anticipates the negotiation and finalization of a definitive 20-year LNG sale-and-purchase agreement for 5 million tonnes per annum of LNG offtake from the Port Arthur LNG export project under development.
Moreover, the company bought an indirect 50% limited-partnership interest in Sharyland Utilities, while its Oncor division acquired InfraREIT this May.
Sempra Energy reaffirmed its earnings guidance for 2019. The company still expects to generate earnings of $5.70-$6.30. The Zacks Consensus Estimate for full-year earnings stands at $6.02, above the midpoint of the company projected view.
Sempra Energy has a Zacks Rank #4 (Sell).
Recent Utility Releases
CMS Energy Corporation’s (CMS - Free Report) second-quarter 2019 adjusted earnings per share (EPS) of 33 cents declined 32.7% year over year. The bottom line also missed the Zacks Consensus Estimate of 44 cents by 25%. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%. Moreover, the bottom line improved 12.9% on a year-over-year basis. This company also carries a Zacks Rank #3.
FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2019 operating earnings of 61 cents per share, which outpaced the Zacks Consensus Estimate of 60 cents by 1.67%. However, the reported figure decreased 1.61% from the year-ago quarter’s 62 cents. The company carries a Zacks Rank of 3.
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