U.S. Markets closed

Sempra Energy Tops Q4 Earnings Estimates, Guides for 2015 - Analyst Blog

Zacks Equity Research

Sempra Energy’s (SRE) fourth-quarter 2014 adjusted earnings per share came in at $1.23, ahead of the Zacks Consensus Estimate of $1.09 by 12.8%. Earnings also increased 8.8% from $1.13 per share in the prior-year quarter, primarily on the back of higher revenues and electricity sales volumes, and a decline in interest expenses.

 


Sempra Energy - Earnings Surprise | FindTheCompany

 

Including charges associated with the early closure of the San Onofre Nuclear Generating Station (SONGS), GAAP earnings were $1.18 per share in the quarter compared with $1.13 per share a year ago.

For 2014, the company posted adjusted earnings of $4.71 per share, surpassing the Zacks Consensus Estimate of $4.55 by 3.5% and up 12.7% year over year.

On a GAAP basis, annual earnings per share came in at $4.63 compared with $4.01 per share in the previous year.

Total Revenue

In the quarter under review, total revenue stood at $2.75 billion, missing the Zacks Consensus Estimate by 9.5%. On a year-over-year basis, the top line edged up 1.6% primarily on the back of higher revenues at the energy-related businesses (7.7% year over year) and utilities (0.8%) operations.

Sempra Energy reported total annual revenue of around $11.04 billion, beating the Zacks Consensus Estimate by 2.4%. Total revenue rose roughly 4.5% from $10.56 billion a year ago.

Segment Update

San Diego Gas & Electric (SDG&E): Quarterly earnings were $128 million compared with $119 million in the year-ago quarter. The upside primarily reflects improvement in margin from electric transmission and California Public Utilities Commission (CPUC) base operations, and a decline in legal costs.

Southern California Gas Company (SoCalGas): The segment generated earnings of $76 million, down from $98 million in fourth-quarter 2013.

Sempra South American Utilities: The segment recorded earnings of $63 million in the fourth quarter, up from $43 million in the prior-year period.

Sempra Mexico: The segment recorded earnings of $53 million, up from $26 million in fourth-quarter 2013. The improvement primarily reflects the positive impact of foreign currency exchange and inflation.

Sempra Renewables: The segment recorded quarterly earnings of $18 million, tripling from $6 million a year ago.

Sempra Natural Gas: The segment earned $11 million in the fourth quarter versus $9 million in the prior-year period.

Financial Update

As of Dec 31, 2014, Sempra Energy’s cash and cash equivalents were $570 million, down from $904 million as of Dec 31, 2013.

Long-term debt was $12,167 million as of Dec 31, 2014 versus $11,253 million at 2013-end.

In 2014, cash flow from operating activities was $2,161 million, up from $1,784 million in the year-ago period.

In the fourth quarter, the company’s capital expenditures and investments were $851 million compared with $788 million in the prior-year period.

Guidance

Sempra Energy provided its guidance for 2015 adjusted earnings in the range of $4.60 to $5.00 per share.

Another Peer Release

ONE Gas, Inc. (OGS) reported fourth-quarter 2014 earnings of 69 cents per share, surpassing the Zacks Consensus Estimate of 66 cents by 4.5%.

Zacks Rank

Sempra Energy currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry include Chesapeake Utilities Corp. (CPK) and Northwest Natural Gas Co. (NWN), both carrying a Zacks Rank #2 (Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
SEMPRA ENERGY (SRE): Free Stock Analysis Report
 
CHESAPEAKE UTIL (CPK): Free Stock Analysis Report
 
NORTHWEST NAT G (NWN): Free Stock Analysis Report
 
ONE GAS INC (OGS): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research