We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sempra Energy (SRE) Beats on Q3 Earnings, Keeps '16 View
Read MoreHide Full Article
Sempra Energy’s (SRE - Free Report) third-quarter 2016 adjusted earnings per share came in at $1.02, beating the Zacks Consensus Estimate of 97 cents by 5.2%. Earnings also improved 3% from 99 cents reported in the prior-year quarter.
GAAP earnings were $2.46 per share in the quarter, compared with 99 cents a year ago.
Total Revenues
In the quarter under review, total revenue was $2,535 million, up 2.2% year over year, due to higher contributions from the energy-related businesses (1.1%) and utilities (2.3%). However, total revenue missed the consensus mark of $2,665 million by 4.9%.
San Diego Gas & Electric (SDG&E): Quarterly earnings were $183 million compared with the year-ago figure of $170 million. During the quarter, California Public Utilities Commission approved SDG&E's proposal to construct a new 15-mile, 230-kilovolt transmission line to improve reliability. Also, the CPUC approved a proposal by SDG&E to build two new energy storage projects in San Diego County to enhance electric reliability.
Southern California Gas Company (SoCalGas): The segment registered no earnings in the third quarter of 2016, compared to a year-ago loss of $8 million.
Sempra South American Utilities: The segment recorded earnings of $46 million in the third quarter, up from $43 million in the prior-year quarter.
Sempra Mexico: The segment recorded earnings of $332 million, up from $63 million in the prior-year quarter, primarily due to the $350 million after-tax re-measurement gain on the Gasoductos de Chihuahua acquisition. This was offset by the $65 million after-tax charge related to the planned sale of the Termoeléctrica de Mexicali plant and beneficial effects of foreign currency and inflation in third-quarter 2015.
Sempra Renewables: The segment recorded quarterly earnings of $17 million, up from $15 million in the prior-year quarter.
Sempra Natural Gas: The segment reported earnings of $77 million, compared to the year-ago quarter’s $1 million. The improvement was driven by the $78 million after-tax gain from the sale of EnergySouth.
Parent & Other: The segment reported a loss of $33 million in the third quarter, narrower than the year-ago loss of $36 million.
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.
Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sempra Energy (SRE) Beats on Q3 Earnings, Keeps '16 View
Sempra Energy’s (SRE - Free Report) third-quarter 2016 adjusted earnings per share came in at $1.02, beating the Zacks Consensus Estimate of 97 cents by 5.2%. Earnings also improved 3% from 99 cents reported in the prior-year quarter.
GAAP earnings were $2.46 per share in the quarter, compared with 99 cents a year ago.
Total Revenues
In the quarter under review, total revenue was $2,535 million, up 2.2% year over year, due to higher contributions from the energy-related businesses (1.1%) and utilities (2.3%). However, total revenue missed the consensus mark of $2,665 million by 4.9%.
SEMPRA ENERGY Price, Consensus and EPS Surprise
SEMPRA ENERGY Price, Consensus and EPS Surprise | SEMPRA ENERGY Quote
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings were $183 million compared with the year-ago figure of $170 million. During the quarter, California Public Utilities Commission approved SDG&E's proposal to construct a new 15-mile, 230-kilovolt transmission line to improve reliability. Also, the CPUC approved a proposal by SDG&E to build two new energy storage projects in San Diego County to enhance electric reliability.
Southern California Gas Company (SoCalGas): The segment registered no earnings in the third quarter of 2016, compared to a year-ago loss of $8 million.
Sempra South American Utilities: The segment recorded earnings of $46 million in the third quarter, up from $43 million in the prior-year quarter.
Sempra Mexico: The segment recorded earnings of $332 million, up from $63 million in the prior-year quarter, primarily due to the $350 million after-tax re-measurement gain on the Gasoductos de Chihuahua acquisition. This was offset by the $65 million after-tax charge related to the planned sale of the Termoeléctrica de Mexicali plant and beneficial effects of foreign currency and inflation in third-quarter 2015.
Sempra Renewables: The segment recorded quarterly earnings of $17 million, up from $15 million in the prior-year quarter.
Sempra Natural Gas: The segment reported earnings of $77 million, compared to the year-ago quarter’s $1 million. The improvement was driven by the $78 million after-tax gain from the sale of EnergySouth.
Parent & Other: The segment reported a loss of $33 million in the third quarter, narrower than the year-ago loss of $36 million.
Financial Update
As of Sep 30, 2016, Sempra Energy’s cash and cash equivalents were $518 million, compared with $403 million as of Dec 31, 2015.
Long-term debt was $13,522 million as of Sep 30, 2016, compared with $13,134 million at 2015-end.
Cash flow from operating activities was $1,691 million in the first nine months of 2016, down from $2,089 million in the year-ago period.
In the third quarter, the company’s capital expenditures and investments were $2,247 million, compared with $783 million in the prior-year quarter.
Guidance
Sempra Energy reiterated its 2016 adjusted earnings guidance at the range of $4.60 to $5.00 per share.
Zacks Rank
Sempra Energycurrently carries a Zacks Rank #3 (Hold).You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.
Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>