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Sempra (SRE) to Report Q3 Earnings: What's in the Store?

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Sempra Energy SRE is slated to report third-quarter 2021 results on Nov 5, before the opening bell.

In the last reported quarter, the company delivered an earnings surprise of 2.52%. Sempra has a trailing four-quarter earnings surprise of 5.18%, on average.

Factors to Note

During most part of the third quarter, major parts of the company’s service territories experienced dry and warmer-than-normal temperature along with extreme drought conditions. Such weather patterns might have led to increased electricity consumption for cooling purposes, which in turn, may have favored the third-quarter performance.

However, heatwaves during the third quarter resulted in wildfires like the Dixie Fire and KNP complex, which might have damaged the company’s infrastructure and caused outages. This, in turn, might have partially disrupted services of Sempra Energy, and thus may have impacted the quarterly performance.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.82 billion, suggesting growth of 6.7% from the year-ago quarter.

The wildfires are likely to have adversely impacted the utility’s infrastructure. This, in turn, might have pushed up the company’s operating expenses, thereby might get reflected in the third-quarter bottom line.

In August 2021, the company raised its 2021 earnings guidance. This instills further confidence regarding the to-be-reported quarter’s results.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.70 per share, indicating an improvement of 29.8% from the prior-year reported figure.

Sempra Energy Price and EPS Surprise

Sempra Energy Price and EPS Surprise
Sempra Energy Price and EPS Surprise

Sempra Energy price-eps-surprise | Sempra Energy Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Sempra this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here.

Earnings ESP:The company’s Earnings ESP is -0.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Sempra currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a couple of Utilities players you may want to consider, as thesehave the right combination of elements to post an earnings beat this season:

Atmos Energy ATO has an Earnings ESP of +0.46% and a Zacks Rank #3.

Spire SR has an Earnings ESP of +2.58% and a Zacks Rank #3.

A Recent Utility Release

ONE Gas OGS reported third-quarter 2021 earnings of 38 cents per share, which matched the Zacks Consensus Estimate.


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

Atmos Energy Corporation (ATO) : Free Stock Analysis Report

Spire Inc. (SR) : Free Stock Analysis Report

ONE Gas, Inc. (OGS) : Free Stock Analysis Report

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