Sempra Energy's 3Q falls short

Sempra Energy's 3Q net income up 10 percent but falls short of market forecasts

Associated Press

NEWS: Sempra Energy reported Tuesday that its third-quarter net income increased 10 percent but the results fell short of market expectations.

DETAILS: The company was helped by improved revenue from its utility business. A $60 million charge tied to the write-down of its stake in the Rockies Express Pipeline in the prior quarter also helped boost this year's results by comparison.

NUMBERS: Its net income rose to $296 million, or $1.19 per share, for the three months that ended Sept. 30. That is compared with net income of $268 million, or $1.09 per share, for the same period last year. It earned $1.33 per share last year on an adjusted basis.

Total revenue increased to $2.55 billion from $2.51 billion.

Analysts polled by FactSet were anticipating earnings of $1.21 per share on revenue of $2.62 billion.

FUTURE: Sempra reaffirmed its full-year forecast of earnings between $4.30 and $4.60 per share for the year; analysts are expecting $4.39 per share.

The company said that pending Mexican tax reform legislation will likely reduce its 2013 earnings per share by about 5 cents. Sempra also is working actively to complete a joint venture for the Energia Sierra Juarez wind project. If the joint venture is not formed as planned this year, it expects 5 cents per share of its earnings would be deferred from 2013.

STOCK: Shares of the San Diego-based energy company fell 57 cents to $91.36 by midday, in line with broader market activity.

View Comments (0)