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) Tops on Q4 Earnings, Issues '18 EPS View
Read MoreHide Full Article
Sempra Energy’s (SRE - Free Report) fourth-quarter 2017 adjusted earnings per share (EPS) of $1.54 surpassed the Zacks Consensus Estimate of $1.40 by 10%. Earnings rose 1.3% from the prior-year quarter figure of $1.52.
Barring the one-time adjustments, the company reported GAAP loss of $1.99 per share in the quarter, as against earnings of $1.51 in the prior-year quarter.
In 2017, the company reported adjusted EPS of $5.42 that surpassed the Zacks Consensus Estimate of $5.26. Earnings rose 7.3% from the prior-year figure of $5.05.
Total Revenues
In the quarter under review, total revenues were $2,964 million, up 3.3% year over year on higher contributions from both the energy-related businesses (up 16.5%) and utilities (1.7%). However, total revenues missed the consensus mark of $3,126 million by 5.2%.
In 2017, the company generated revenues worth $11.21 billion, which surpassed the Zacks Consensus Estimate of $11.09 billion. On a year-over-year basis, revenues rose 10.1%.
Segment Update
San DiegoGas & Electric (SDG&E): Quarterly earnings for this segment were $131 million compared with the year-ago period figure of $151 million. The decline stemmed from an income-tax expense related to the Tax Cuts and Jobs Act of 2017.
Southern California Gas Company (SoCalGas): The segment registered earnings of $128 million in the fourth quarter compared with $151 million in the year-ago quarter.
Sempra South American Utilities: The segment recorded earnings of $52 million in the fourth quarter, up from $29 million in the prior-year quarter. The decrease can be attributed to a $17-million charge related to Peruvian tax reform in 2016.
Sempra Mexico: The segment reported earnings of $64 million, compared with $56 million recorded in the prior-year quarter. This is driven by favorable currency exchange rate and inflation effects.
Sempra Renewables: The segment recorded quarterly earnings of $203 million, up from $12 million in the prior-year quarter.
Sempra LNG & Midstream: The segment generated earnings of $126 million against the year-ago quarter’s loss of $3 million. The upside was driven by a non-cash income-tax benefit related to the Tax Cuts and Jobs Act of 2017.
Financial Update
As of Dec 31, 2017, Sempra Energy’s cash and cash equivalents were $288 million, compared with $349 million as of Dec 31, 2016.
Long-term debt was $16,445 million as of Dec 31, 2017 compared with $14,429 million at 2016 end.
Cash flow from operating activities was $3,625 million at the end of 2017, up from $2,311 million at 2016-end.
In 2017, the company’s capital expenditures, investments and acquisition of businesses worth $4,219 million compared with $5,718 million in the prior-year period.
Guidance
Sempra Energy issued 2018 earnings per share guidance. The company currently expects to generate earnings in the band of $5.30 to $5.80.
Zacks Rank & Key Pick
Sempra Energy currently carries a Zacks Rank #4 (Sell).
NewJersey Resources delivered a positive earnings surprise of 164.41% in fourth-quarter 2017. It currently boasts a solid long-term earnings growth rate of 6%.
Recent Peer Releases
Duke Energy (DUK - Free Report) reported fourth-quarter 2017 adjusted earnings of 94 cents per share, beating the Zacks Consensus Estimate of 91 cents by 3.3%.
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 63 cents in fourth-quarter 2017 missed the Zacks Consensus Estimate of 69 cents by 8.7%.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Sempra Energy (SRE) Tops on Q4 Earnings, Issues '18 EPS View
Sempra Energy’s (SRE - Free Report) fourth-quarter 2017 adjusted earnings per share (EPS) of $1.54 surpassed the Zacks Consensus Estimate of $1.40 by 10%. Earnings rose 1.3% from the prior-year quarter figure of $1.52.
Barring the one-time adjustments, the company reported GAAP loss of $1.99 per share in the quarter, as against earnings of $1.51 in the prior-year quarter.
Sempra Energy Price, Consensus and EPS Surprise
Sempra Energy Price, Consensus and EPS Surprise | Sempra Energy Quote
In 2017, the company reported adjusted EPS of $5.42 that surpassed the Zacks Consensus Estimate of $5.26. Earnings rose 7.3% from the prior-year figure of $5.05.
Total Revenues
In the quarter under review, total revenues were $2,964 million, up 3.3% year over year on higher contributions from both the energy-related businesses (up 16.5%) and utilities (1.7%). However, total revenues missed the consensus mark of $3,126 million by 5.2%.
In 2017, the company generated revenues worth $11.21 billion, which surpassed the Zacks Consensus Estimate of $11.09 billion. On a year-over-year basis, revenues rose 10.1%.
Segment Update
San DiegoGas & Electric (SDG&E): Quarterly earnings for this segment were $131 million compared with the year-ago period figure of $151 million. The decline stemmed from an income-tax expense related to the Tax Cuts and Jobs Act of 2017.
Southern California Gas Company (SoCalGas): The segment registered earnings of $128 million in the fourth quarter compared with $151 million in the year-ago quarter.
Sempra South American Utilities: The segment recorded earnings of $52 million in the fourth quarter, up from $29 million in the prior-year quarter. The decrease can be attributed to a $17-million charge related to Peruvian tax reform in 2016.
Sempra Mexico: The segment reported earnings of $64 million, compared with $56 million recorded in the prior-year quarter. This is driven by favorable currency exchange rate and inflation effects.
Sempra Renewables: The segment recorded quarterly earnings of $203 million, up from $12 million in the prior-year quarter.
Sempra LNG & Midstream: The segment generated earnings of $126 million against the year-ago quarter’s loss of $3 million. The upside was driven by a non-cash income-tax benefit related to the Tax Cuts and Jobs Act of 2017.
Financial Update
As of Dec 31, 2017, Sempra Energy’s cash and cash equivalents were $288 million, compared with $349 million as of Dec 31, 2016.
Long-term debt was $16,445 million as of Dec 31, 2017 compared with $14,429 million at 2016 end.
Cash flow from operating activities was $3,625 million at the end of 2017, up from $2,311 million at 2016-end.
In 2017, the company’s capital expenditures, investments and acquisition of businesses worth $4,219 million compared with $5,718 million in the prior-year period.
Guidance
Sempra Energy issued 2018 earnings per share guidance. The company currently expects to generate earnings in the band of $5.30 to $5.80.
Zacks Rank & Key Pick
Sempra Energy currently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the space is NewJersey Resources (NJR - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NewJersey Resources delivered a positive earnings surprise of 164.41% in fourth-quarter 2017. It currently boasts a solid long-term earnings growth rate of 6%.
Recent Peer Releases
Duke Energy (DUK - Free Report) reported fourth-quarter 2017 adjusted earnings of 94 cents per share, beating the Zacks Consensus Estimate of 91 cents by 3.3%.
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 63 cents in fourth-quarter 2017 missed the Zacks Consensus Estimate of 69 cents by 8.7%.
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>