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Sempra Energy (SRE) Q1 Earnings Top Estimates, Revenues Miss

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Sempra Energy’s (SRE - Free Report) first-quarter 2020 adjusted earnings per share (EPS) came in at $3.08, surpassing the Zacks Consensus Estimate of $2.32 by 32.8%. The bottom line also surged 60.4% from $1.92 in the prior-year quarter.

Barring one-time items, the company generated GAAP earnings of $2.53 per share compared with $1.59 in first-quarter 2019. This year-over-year upside was driven by a solid top-line performance.

Total Revenues

In the quarter under review, total revenues of $3,029 million increased 4.5% year over year on higher contributions from the Utilities business (up 6%). The top line, however, missed the consensus mark of $3,179 million by 4.7%.

Segment Update

San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $262 million compared with the year-ago quarter’s $176 million.

Southern California Gas Company (SoCalGas): In this segment, quarterly earnings totaled $303 million in the first quarter of 2020 compared with $264 million reported in the prior-year quarter.

Sempra Texas Utility: Earnings in this segment came in at $105 million in the reported quarter compared with $94 million in the year-ago quarter.

Sempra Mexico: The segment recorded net earnings of $191 million compared with $57 million in the year-ago quarter.

Sempra LNG: The segment reported earnings of $75 million compared with the year-ago quarter’s $5 million.

Parent and Other: Quarterly loss at this division increased to $248 million from the year-ago quarter’s loss of $117 million.

Sempra Energy Price, Consensus and EPS Surprise

Financial Update

As of Mar 31, 2020, Sempra Energy’s cash and cash equivalents totaled $2,247 million compared with $108 million, as of Dec 31, 2019.

Long-term debt and finance leases amounted to $20,198 million, as of Mar 31, 2020, compared with $20,785 million at 2019-end.

Cash flow from operating activities was $1,318 million at the end of first-quarter 2020, up from $951 million at the end of first-quarter 2019.

In the reported quarter, the company’s capital expenditures, investments and acquisitions summed $1,096 million compared with $877 million in the first quarter of 2019.

2020 Guidance

Sempra Energy reaffirmed its adjusted EPS guidance for 2020. The company expects to generate earnings of $6.70-$7.50 per share. The Zacks Consensus Estimate for full-year earnings stands at $7.17 per share, above the midpoint of the company-projected view.

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

FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.13%.

NextEra Energy (NEE - Free Report) reported first-quarter 2020 adjusted earnings of $2.38 per share, which surpassed the Zacks Consensus Estimate of $2.21 by 7.7%.

CMS Energy Corporation (CMS - Free Report) reported first-quarter 2020 adjusted EPS of 86 cents, which surpassed the Zacks Consensus Estimate of 77 cents by 11.7%.

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