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A month has gone by since the last earnings report for Sempra (SRE). 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%.