We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties. You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies. In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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 (SRE) Up 4.9% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for Sempra (SRE - Free Report) . Shares have added about 4.9% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Sempra Energy Q1 Earnings Top Estimates, Revenues Miss
Sempra Energy’s first-quarter 2020 adjusted earnings per share (EPS) came in at $3.08, surpassing the Zacks Consensus Estimate of $2.32 by 32.8%. The bottom line also surged 60.4% from $1.92 in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $2.53 per share compared with $1.59 in first-quarter 2019. This year-over-year upside was driven by a solid top-line performance.
Total Revenues
In the quarter under review, total revenues of $3,029 million increased 4.5% year over year on higher contributions from the Utilities business (up 6%). The top line, however, missed the consensus mark of $3,179 million by 4.7%.
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $262 million compared with the year-ago quarter’s $176 million.
Southern California Gas Company (SoCalGas): In this segment, quarterly earnings totaled $303 million in the first quarter of 2020 compared with $264 million reported in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $105 million in the reported quarter compared with $94 million in the year-ago quarter.
Sempra Mexico: The segment recorded net earnings of $191 million compared with $57 million in the year-ago quarter.
Sempra LNG: The segment reported earnings of $75 million compared with the year-ago quarter’s $5 million.
Parent and Other: Quarterly loss at this division increased to $248 million from the year-ago quarter’s loss of $117 million.
Financial Update
As of Mar 31, 2020, Sempra Energy’s cash and cash equivalents totaled $2,247 million compared with $108 million, as of Dec 31, 2019.
Long-term debt and finance leases amounted to $20,198 million, as of Mar 31, 2020, compared with $20,785 million at 2019-end.
Cash flow from operating activities was $1,318 million at the end of first-quarter 2020, up from $951 million at the end of first-quarter 2019.
In the reported quarter, the company’s capital expenditures, investments and acquisitions summed $1,096 million compared with $877 million in the first quarter of 2019.
2020 Guidance
Sempra Energy reaffirmed its adjusted EPS guidance for 2020. The company expects to generate earnings of $6.70-$7.50 per share. The Zacks Consensus Estimate for full-year earnings stands at $7.17 per share, above the midpoint of the company-projected view.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Sempra has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Sempra has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sempra (SRE) Up 4.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Sempra (SRE - Free Report) . Shares have added about 4.9% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Sempra Energy Q1 Earnings Top Estimates, Revenues Miss
Sempra Energy’s first-quarter 2020 adjusted earnings per share (EPS) came in at $3.08, surpassing the Zacks Consensus Estimate of $2.32 by 32.8%. The bottom line also surged 60.4% from $1.92 in the prior-year quarter.
Barring one-time items, the company generated GAAP earnings of $2.53 per share compared with $1.59 in first-quarter 2019. This year-over-year upside was driven by a solid top-line performance.
Total Revenues
In the quarter under review, total revenues of $3,029 million increased 4.5% year over year on higher contributions from the Utilities business (up 6%). The top line, however, missed the consensus mark of $3,179 million by 4.7%.
Segment Update
San Diego Gas & Electric (SDG&E): Quarterly earnings amounted to $262 million compared with the year-ago quarter’s $176 million.
Southern California Gas Company (SoCalGas): In this segment, quarterly earnings totaled $303 million in the first quarter of 2020 compared with $264 million reported in the prior-year quarter.
Sempra Texas Utility: Earnings in this segment came in at $105 million in the reported quarter compared with $94 million in the year-ago quarter.
Sempra Mexico: The segment recorded net earnings of $191 million compared with $57 million in the year-ago quarter.
Sempra LNG: The segment reported earnings of $75 million compared with the year-ago quarter’s $5 million.
Parent and Other: Quarterly loss at this division increased to $248 million from the year-ago quarter’s loss of $117 million.
Financial Update
As of Mar 31, 2020, Sempra Energy’s cash and cash equivalents totaled $2,247 million compared with $108 million, as of Dec 31, 2019.
Long-term debt and finance leases amounted to $20,198 million, as of Mar 31, 2020, compared with $20,785 million at 2019-end.
Cash flow from operating activities was $1,318 million at the end of first-quarter 2020, up from $951 million at the end of first-quarter 2019.
In the reported quarter, the company’s capital expenditures, investments and acquisitions summed $1,096 million compared with $877 million in the first quarter of 2019.
2020 Guidance
Sempra Energy reaffirmed its adjusted EPS guidance for 2020. The company expects to generate earnings of $6.70-$7.50 per share. The Zacks Consensus Estimate for full-year earnings stands at $7.17 per share, above the midpoint of the company-projected view.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Sempra has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Sempra has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.