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 Q4 Earnings, Misses on Revenues
Read MoreHide Full Article
Sempra Energy’s (SRE - Free Report) fourth-quarter 2019 earnings per share (EPS) came in at $1.55, which surpassed the Zacks Consensus Estimate of $1.31 by 18.3%. However, the bottom line declined 48.8% from $3.03 registered in the prior-year quarter.
The year-over-year downside can be attributed to absence of gain on sale of assets, which the company had witnessed in the year-ago comparable period.
For 2019, the company generated adjusted EPS of $6.78, up from $5.15 at the end of 2018. The full-year bottom line beat the Zacks Consensus Estimate of $6.17 by 9.9%.
Total Revenues
In the quarter under review, total revenues of $2,943 million increased 4.1% year over year on higher contributions from its Utilities (up 8.8%) business. The top line, however, missed the consensus mark of $3,084 million by 4.6%.
For 2019, Sempra Energy recorded revenues of $10.83 billion, up 7.2% from the prior year’s figure. The full-year top line, however, missed the consensus mark of $11.16 billion by 3%.
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $185 million compared with the year-ago quarter’s $148 million.
Southern California Gas Company (SoCalGas): At this segment, quarterly earnings totaled $204 million in the fourth quarter of 2019 compared with $156 million registered in the prior-year quarter.
Sempra Texas Utility: Earnings at this segment came in at $109 million in the reported quarter compared with $88 million in the year-ago quarter.
Sempra Mexico: The segment recorded net earnings of $39 million compared with $76 million in the year-ago quarter.
Sempra Renewables: The segment did not record any earnings in the fourth quarter against earnings of $382 million in the third quarter of 2018.
Sempra LNG: The segment reported loss of $19 million against the year-ago quarter’s earnings of $147 million.
Parent and Other: Quarterly loss at this division narrowed to $132 million from the year-ago quarter’s loss of $174 million.
Financial Update
As of Dec 31, 2019, Sempra Energy’s cash and cash equivalents totaled $108 million compared with $102 million as of Dec 31, 2018.
Long-term debt and finance leases amounted to $20,785 million as of Dec 31, 2019 compared with $20,903 million at 2018 end.
Cash flow from operating activities was $3,088 million at the end of 2019, down from $3,516 million at the end of 2018.
In the reported quarter, the company’s total capital expenditures, investments and acquisitions were $5,505 million compared with $13,712 million in the fourth quarter of 2018.
2020 Guidance
Sempra Energy reiterated its earnings guidance for 2020. The company continues to expect earnings of $6.70-$7.50 per share. The Zacks Consensus Estimate for full-year earnings stands at $7.10, in line with the midpoint of the projected view.
CMS Energy (CMS - Free Report) reported fourth-quarter 2019 adjusted earnings per share (EPS) of 68 cents, up 70% from the year-ago quarter’s reported figure of 40 cents. The bottom line, however, missed the Zacks Consensus Estimate of 69 cents.
NextEra Energy (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.
Dominion Energy (D - Free Report) reported fourth-quarter 2019 operating earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.16 by 1.7%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Sempra Energy (SRE) Beats on Q4 Earnings, Misses on Revenues
Sempra Energy’s (SRE - Free Report) fourth-quarter 2019 earnings per share (EPS) came in at $1.55, which surpassed the Zacks Consensus Estimate of $1.31 by 18.3%. However, the bottom line declined 48.8% from $3.03 registered in the prior-year quarter.
The year-over-year downside can be attributed to absence of gain on sale of assets, which the company had witnessed in the year-ago comparable period.
For 2019, the company generated adjusted EPS of $6.78, up from $5.15 at the end of 2018. The full-year bottom line beat the Zacks Consensus Estimate of $6.17 by 9.9%.
Total Revenues
In the quarter under review, total revenues of $2,943 million increased 4.1% year over year on higher contributions from its Utilities (up 8.8%) business. The top line, however, missed the consensus mark of $3,084 million by 4.6%.
For 2019, Sempra Energy recorded revenues of $10.83 billion, up 7.2% from the prior year’s figure. The full-year top line, however, missed the consensus mark of $11.16 billion by 3%.
Sempra Energy Price, Consensus and EPS Surprise
Sempra Energy price-consensus-eps-surprise-chart | Sempra Energy Quote
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $185 million compared with the year-ago quarter’s $148 million.
Southern California Gas Company (SoCalGas): At this segment, quarterly earnings totaled $204 million in the fourth quarter of 2019 compared with $156 million registered in the prior-year quarter.
Sempra Texas Utility: Earnings at this segment came in at $109 million in the reported quarter compared with $88 million in the year-ago quarter.
Sempra Mexico: The segment recorded net earnings of $39 million compared with $76 million in the year-ago quarter.
Sempra Renewables: The segment did not record any earnings in the fourth quarter against earnings of $382 million in the third quarter of 2018.
Sempra LNG: The segment reported loss of $19 million against the year-ago quarter’s earnings of $147 million.
Parent and Other: Quarterly loss at this division narrowed to $132 million from the year-ago quarter’s loss of $174 million.
Financial Update
As of Dec 31, 2019, Sempra Energy’s cash and cash equivalents totaled $108 million compared with $102 million as of Dec 31, 2018.
Long-term debt and finance leases amounted to $20,785 million as of Dec 31, 2019 compared with $20,903 million at 2018 end.
Cash flow from operating activities was $3,088 million at the end of 2019, down from $3,516 million at the end of 2018.
In the reported quarter, the company’s total capital expenditures, investments and acquisitions were $5,505 million compared with $13,712 million in the fourth quarter of 2018.
2020 Guidance
Sempra Energy reiterated its earnings guidance for 2020. The company continues to expect earnings of $6.70-$7.50 per share. The Zacks Consensus Estimate for full-year earnings stands at $7.10, in line with the midpoint of the projected view.
Zacks Rank
Sempra Energy currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
CMS Energy (CMS - Free Report) reported fourth-quarter 2019 adjusted earnings per share (EPS) of 68 cents, up 70% from the year-ago quarter’s reported figure of 40 cents. The bottom line, however, missed the Zacks Consensus Estimate of 69 cents.
NextEra Energy (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.
Dominion Energy (D - Free Report) reported fourth-quarter 2019 operating earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.16 by 1.7%.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>