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