Back to top

Image: Bigstock

Sempra Energy (SRE) Beats on Q4 Earnings, Misses on Revenues

Read MoreHide Full Article

Sempra Energy’s SRE fourth-quarter 2019 earnings per share (EPS) came in at $1.55, which surpassed the Zacks Consensus Estimate of $1.31 by 18.3%. However, the bottom line declined 48.8% from $3.03 registered in the prior-year quarter.

The year-over-year downside can be attributed to absence of gain on sale of assets, which the company had witnessed in the year-ago comparable period.

For 2019, the company generated adjusted EPS of $6.78, up from $5.15 at the end of 2018. The full-year bottom line beat the Zacks Consensus Estimate of $6.17 by 9.9%.

Total Revenues

In the quarter under review, total revenues of $2,943 million increased 4.1% year over year on higher contributions from its Utilities (up 8.8%) business. The top line, however, missed the consensus mark of $3,084 million by 4.6%.

For 2019, Sempra Energy recorded revenues of $10.83 billion, up 7.2% from the prior year’s figure. The full-year top line, however, missed the consensus mark of $11.16 billion by 3%.

Sempra Energy Price, Consensus and EPS Surprise

Sempra Energy Price, Consensus and EPS Surprise

Sempra Energy price-consensus-eps-surprise-chart | Sempra Energy Quote

Segment Update

San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $185 million compared with the year-ago quarter’s $148 million.

Southern California Gas Company (SoCalGas): At this segment, quarterly earnings totaled $204 million in the fourth quarter of 2019 compared with $156 million registered in the prior-year quarter.

Sempra Texas Utility: Earnings at this segment came in at $109 million in the reported quarter compared with $88 million in the year-ago quarter.

Sempra Mexico: The segment recorded net earnings of $39 million compared with $76 million in the year-ago quarter.

Sempra Renewables: The segment did not record any earnings in the fourth quarter against earnings of $382 million in the third quarter of 2018.

Sempra LNG: The segment reported loss of $19 million against the year-ago quarter’s earnings of $147 million.

Parent and Other: Quarterly loss at this division narrowed to $132 million from the year-ago quarter’s loss of $174 million.

Financial Update

As of Dec 31, 2019, Sempra Energy’s cash and cash equivalents totaled $108 million compared with $102 million as of Dec 31, 2018.

Long-term debt and finance leases amounted to $20,785 million as of Dec 31, 2019 compared with $20,903 million at 2018 end.

Cash flow from operating activities was $3,088 million at the end of 2019, down from $3,516 million at the end of 2018.

In the reported quarter, the company’s total capital expenditures, investments and acquisitions were $5,505 million compared with $13,712 million in the fourth quarter of 2018.

2020 Guidance

Sempra Energy reiterated its earnings guidance for 2020. The company continues to expect earnings of $6.70-$7.50 per share. The Zacks Consensus Estimate for full-year earnings stands at $7.10, in line with the midpoint of the projected view.

Zacks Rank

Sempra Energy currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

CMS Energy CMS reported fourth-quarter 2019 adjusted earnings per share (EPS) of 68 cents, up 70% from the year-ago quarter’s reported figure of 40 cents. The bottom line, however, missed the Zacks Consensus Estimate of 69 cents.

NextEra Energy NEE reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.

Dominion Energy D reported fourth-quarter 2019 operating earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.16 by 1.7%.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

See their latest picks free >>