In This Article:
A month has gone by since the last earnings report for Sempra (SRE). Shares have added about 4.4% in that time frame, outperforming 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 the most recent earnings report in order to get a better handle on the important catalysts.
Sempra Energy Q2 Earnings Miss, Revenues Improve Y/Y
Sempra Energy 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.
Total Revenues
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%.
Segment Update
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.
Financial Update
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.