Sempra (SRE) Q3 Earnings Beat Estimates, Revenues Fall Y/Y
Sempra Energy SRE reported third-quarter 2023 adjusted earnings per share (EPS) of $1.08, which beat the Zacks Consensus Estimate of $1.01 by 6.9%. The bottom line also improved 10.2% from 98 cents in the prior-year quarter.
Considering one-time items, the company generated GAAP earnings of $1.14 per share compared with 77 cents in the third quarter of 2022.
Total Revenues
Sempra’s total revenues of $3,334 million declined 7.8% from $3,617 million in the year-ago quarter. This was due to lower contributions from the Natural gas, Electric and Energy-related business units. The top line also missed the Zacks Consensus Estimate of $3,841.8 million by 5.9%.
Sempra Energy Price, Consensus and EPS Surprise
Sempra Energy price-consensus-eps-surprise-chart | Sempra Energy Quote
Segmental Update
San Diego Gas & Electric: Quarterly earnings amounted to $274 million compared with the year-ago quarter’s level of $271 million.
Southern California Gas Company: The segment reported earnings of $16 million compared to a loss of $82 million in the prior-year period.
Sempra Texas Utility: Earnings in this segment improved from $256 million in the year-ago quarter to $305 million.
Sempra Infrastructure: The segment recorded earnings of $223 million compared with $114 million in the year-ago quarter.
Parent and Other: The segment reported a third-quarter loss of $97 million, which was wider than the prior-year period’s reported loss of $74 million.
Financial Update
As of Sep 30, 2023, Sempra’s cash and cash equivalents totaled $1,149 million compared with $370 million as of Dec 31, 2022.
Long-term debt and finance leases amounted to $27,703 million as of Sep 30, 2023 compared with $24,548 million as of Dec 31, 2022.
Cash flow from operating activities increased from $1,455 million in the year-ago period to $5,129 million in the reported quarter.
Guidance
Sempra reaffirmed its adjusted EPS guidance for 2023. The company expects to be at or higher than its full-year 2023 adjusted EPS guidance range of $4.30-$4.60 per share. The Zacks Consensus Estimate for full-year earnings is pegged at $4.51 per share, higher than the midpoint of the company’s guided range.
SRE also reiterated its full-year 2024 earnings in the range of $4.55-$4.90 per share. The Zacks Consensus Estimate is pegged at $4.78 per share, higher than the midpoint of the company’s projected range.
Sempra also anticipates a long-term EPS growth rate of 6-8%.
Zacks Rank
Sempra currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
PG&E Corporation’s PCG adjusted EPS of 24 cents in the third quarter of 2023 lagged the Zacks Consensus Estimate of 28 cents by 14.3%. The bottom line decreased 17.2% from the year-ago quarter’s reported figure.
In the third quarter, PCG reported total revenues of $5,888 million compared with $5,394 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,946.1 million by 0.9%.
NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the third quarter, NextEra’s operating revenues were $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. However, the top line improved 6.7% year over year.
Consolidated Edison, Inc. ED reported third-quarter 2023 adjusted earnings of $1.62 per share, which beat the Zacks Consensus Estimate of $1.58 per share by 2.5%. However, the bottom line decreased 0.6% from $1.63 in the prior-year quarter.
In the reported quarter, Consolidated Edison's total revenues of $3,872 million beat the Zacks Consensus Estimate of $3,816 million by 1.5.%. However, the top line declined 7% from $4,165 million in the year-ago quarter. The downside was due to lower gas steam and non-utility revenues.
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