What's in the Cards for Sempra (SRE) This Earnings Season?
Sempra Energy SRE is slated to report third-quarter 2023 results on Nov 3 before the opening bell.
In the last reported quarter, the company reported an earnings surprise of 9.30%. Sempra Energy has a trailing four-quarter earnings surprise of 9.81%, on average.
Factors to Note
In the third quarter, some parts of Sempra Energy’s service territories witnessed warmer-than-normal temperatures. Such weather patterns are likely to have boosted the electricity demand for cooling purposes among the company’s customers in summer. This is expected to have boosted revenues in the soon-to-be-reported quarter.
Meanwhile, strong load growth is likely to have benefited Sempra’s third-quarter revenue performance.
However, some parts of Sempra Energy’s service territories experienced extreme weather conditions like tornados, accompanied by gusty winds and the Hurricane Hilary storm, which may have dampened the smooth flow of electricity among SRE customers. This is likely to have impacted the company’s third-quarter revenues to some extent.
From the cost perspective, storms, along with gusty winds, may have caused infrastructural damage for Sempra Energy, thereby increasing the company’s operation and maintenance expenses to repair the damage. This might have hurt SRE’s third-quarter bottom line. However, this may have been more than offset by a strong top line, which is likely to have contributed to Sempra Energy’s third-quarter bottom line.
Q3 Expectations
The Zacks Consensus Estimate for third-quarter revenues is pegged at $3.82 billion. This indicates a 5.6% increase from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.01 per share. This calls for 2% growth 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 Energy this time. 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, which is not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SRE carries a Zacks Rank #2.
Stocks to Consider
Here are three utility players you may want to consider as these have the right combination of elements to post an earnings beat this season:
Ameren AEE has an Earnings ESP of +0.22% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for its third-quarter sales, pegged at $2.37 billion, implies growth of 2.9% from the prior-year quarter’s tally. AEE has a four-quarter average earnings surprise of 8.86%. The Zacks Consensus Estimate for Ameren’s third-quarter earnings is pegged at $1.80 per share.
Spire Inc. SR has an Earnings ESP of +4.58% and a Zacks Rank #3. The Zacks Consensus Estimate for its third-quarter sales, pegged at $308.2 million, indicates a decline of 1.9% from the prior-year quarter’s tally.
SR has a four-quarter negative earnings surprise of 490.58%, on average. The Zacks Consensus Estimate for Spire’s third-quarter bottom line is pegged at a loss of 66 cents per share.
Consolidated Edison, Inc. ED has an Earnings ESP of +3.93% and a Zacks Rank #2. The Zacks Consensus Estimate for Consolidated Edison’s third-quarter revenues is pegged at $3.82 billion, implying a decline of 8.4% from the year-ago quarter.
The Zacks Consensus Estimate for ED’s third-quarter earnings is pegged at $1.58 per share. The company’s four-quarter average earnings surprise is 8.22%.
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Ameren Corporation (AEE) : Free Stock Analysis Report
Sempra Energy (SRE) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
Spire Inc. (SR) : Free Stock Analysis Report
