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Sempra Energy (SRE) Q2 Earnings Beat, Revenues Rise Y/Y

Sempra Energy’s SRE second-quarter 2022 adjusted earnings per share (EPS) came in at $1.98, which beat the Zacks Consensus Estimate of $1.82 by 8.8%. The bottom line also increased by 21.5% from $1.63 in the prior-year quarter.

Barring one-time items, the company generated GAAP earnings of $1.77 per share compared with $1.37 in the second quarter of 2021.

Total Revenues

In the quarter under review, Sempra’s total revenues of $3,547 million increased 29.4% year over year on higher contributions from the Natural Gas business (up 33.3%) and Electric businesses (up 2.9%). Moreover, the top line exceeded the Zacks Consensus Estimate of $3,006.9 million by 17.9%.

Sempra Energy Price, Consensus and EPS Surprise

Sempra Energy price-consensus-eps-surprise-chart | Sempra Energy Quote

Segment Update

San Diego Gas & Electric(SDG&E): Quarterly earnings amounted to $176 million compared with the year-ago quarter’s $186 million.

Southern California Gas Company(SoCalGas): The segment’s earnings came in at $87 million in the second quarter of 2022 compared with the $94 million reported in the prior-year quarter.

Sempra Texas Utility: Earnings in this segment came in at $186 million in the reported quarter compared with $138 million in the year-ago quarter.

Sempra Infrastructure: The segment recorded earnings of $183 million compared with $53 million in the year-ago quarter.

Parent and Other: The quarterly loss in this division increased to $73 million from the year-ago quarter’s loss of $47 million.

Financial Update

As of Jun 30, 2022, Sempra Energy’s cash and cash equivalents totaled $1,931 million compared with $559 million as of Dec 31, 2021.

The long-term debt and finance leases amounted to $24,661 million as of Jun 30, 2022 compared with $21,068 million at the 2021-end.

Cash flow from operating activities was $2,364 million during the six months ended Jun 30, 2022, up from $2,255 million in the year-ago period.

2022 Guidance

Sempra Energy tweaked its adjusted EPS guidance for 2022. The company now expects to generate earnings to the high end of its earlier reported guidance range of $8.10-$8.70 per share. The Zacks Consensus Estimate for full-year earnings stands at $8.55 per share.

The company however reiterated its 2023 EPS guidance. SRE continues to expect adjusted earnings in the range of $8.60-$9.20 per share for 2023. The Zacks Consensus Estimate for 2023 earnings stands at $8.95 per share, higher than the midpoint of the company’s guided range.

Zacks Rank

Sempra Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

CenterPoint Energy, Inc. CNP reported second-quarter 2022 adjusted earnings of 31 cents per share, which beat the Zacks Consensus Estimate of 28 cents per share by 10.7%.

In the second quarter of 2022, CNP generated revenues worth $1,944 million, up 11.6% from the year-ago figure. CenterPoint Energy expects to generate adjusted EPS in the range of $1.37-$1.39.

Entergy Corporation ETR reported second-quarter 2022 adjusted earnings of $1.78 per share, which surpassed the Zacks Consensus Estimate of $1.42 by 25.4%. The reported figure also increased 32.8% from $1.34 per share in the year-ago quarter.

Entergy’s second-quarter revenues of $3,395.2 million exceeded the Zacks Consensus Estimate of $2,878.6 million by 17.9%. ETR expects to generate adjusted earnings in the range of $6.15-$6.45.

CMS Energy Corporation CMS reported second-quarter 2022 adjusted EPS of 53 cents, which beat the Zacks Consensus Estimate of 44 cents by 20.5%. However, the reported figure declined 3.6% on a year-over-year basis.

CMS Energy had cash and cash equivalents of $77 million as of Jun 30, 2022, down from $452 million at the end of 2021. CMS expects its 2022 adjusted earnings guidance in the range of $2.85-$2.89 per share.


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