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Sempra Energy (SRE) Q2 Earnings Top, 2021 EPS View Raised

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Sempra Energy’s SRE second-quarter 2021 adjusted earnings per share (EPS) came in at $1.63, surpassing the Zacks Consensus Estimate of $1.59 by 2.5%. The bottom line however declined 4.7% from $1.71 in the prior-year quarter.

Barring one-time items, the company generated GAAP earnings of $1.37 per share compared with $7.61 in second-quarter 2020. This year-over-year upside was driven by a solid top-line performance.

Total Revenues

In the quarter under review, total revenues of $2,741 million increased 8.5% year over year on higher contributions from both Utilities business (up 9%) and Energy-related businesses (up 4.8 %). The top line, moreover, exceeded the consensus mark of $2,481 million by 10.5%.

Sempra Energy Price, Consensus and EPS Surprise

Sempra Energy Price, Consensus and EPS Surprise
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 $186 million compared with the year-ago quarter’s $193 million.

Southern California Gas Company (SoCalGas): In this segment, quarterly earnings totaled $94 million in the second quarter of 2021 compared with $146 million reported in the prior-year quarter.

Sempra Texas Utility: Earnings in this segment came in at $138 million in the reported quarter compared with $144 million in the year-ago quarter.

Sempra Mexico: The segment recorded net earnings of $4 million compared with $61 million in the year-ago quarter.

Sempra LNG: The segment reported earnings of $47 million compared with the year-ago quarter’s $61 million.

Parent and Other: Quarterly loss in this division declined to $45 million from the year-ago quarter’s loss of $141 million.

Financial Update

As of Jun 30, 2021, Sempra Energy’s cash and cash equivalents totaled $335 million compared with $960 million as of Dec 31, 2020.

Long-term debt and finance leases amounted to $22,090 million as of Jun 30, 2021, compared with $21,781 million at 2020-end.

Cash flow from operating activities was $2,255 million at the end of second-quarter 2021, up from $1,027 million at the end of second-quarter 2020.

In the reported quarter, the company’s capital expenditures, investments and acquisitions were $1,293 million compared with $1,242 million in the second quarter of 2020.

2021 Guidance

Sempra Energy has raised its adjusted EPS guidance for 2021. The company now expects to generate earnings in the range of $7.75-$8.35 per share, compared with the earlier guidance range of $7.50-$8.10 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.10 per share, which is within the company’s newly projected range.

Zacks Rank

Sempra Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

American Electric Power AEP reported second-quarter 2021 adjusted earnings per share of $1.18, which exceeded the Zacks Consensus Estimate of $1.14 by 3.5%.

NextEra Energy NEE reported second-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 67 cents by 5.6%.

DTE Energy Company DTE reported second-quarter 2021 operating earnings per share (EPS) of $1.70, which beat the Zacks Consensus Estimate of $1.44 by 18.1%.


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