Yahoo Finance What's in the Cards for Sempra (SRE) This Earnings Season?
Sempra Energy SRE is slated to report first-quarter 2024 results on May 7, before the opening bell.
The company’s earnings came in line with the Zacks Consensus Estimate in the last reported quarter. SRE has a trailing four-quarter average earnings surprise of 5.51%.
Factors to Note
Sempra’s service territories mostly witnessed below-than-normal temperature pattern during the January-March 2024 period. Such a weather pattern is expected to have boosted the electricity demand for heating purposes in the winter months. This is likely to have contributed favorably to the company’s first-quarter revenues.
Sempra Energy Price and EPS Surprise
Sempra Energy price-eps-surprise | Sempra Energy Quote
However, adverse weather events, including a strong atmospheric river accompanied with flash flooding and heavy rainfall, along with a multi-day storm, adversely impacted parts of SRE’s service areas. This might have led to outages for some of SRE’s customers, thereby hurting its quarterly revenues.
Favorable base rates observed in the previous quarters, favorable returns from earlier made investments and cost-saving initiatives are likely to have benefited Sempra’s first-quarter earnings.
However, high interest expenses and asset supply optimization, increased transportation tariff and lower income tax benefits are likely to have negatively impacted the company’s bottom-line performance in the to-be-reported quarter.
Q1 Expectations
The Zacks Consensus Estimate for revenues is pegged at $6.27 billion, indicating a 4.4% decrease from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.37 per share, implying a 6.2% decline from the prior-year reported figure.
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, which is not the case here.
Earnings ESP: The company’s Earnings ESP is -1.10%. 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 #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are some promising players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.
NiSource Inc. NI is set to report first-quarter earnings on May 8, before market open. It has an Earnings ESP of +1.24% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for earnings is pegged at 81 cents per share, which calls for a 5.2% improvement from the first-quarter 2023 reported number. The Zacks Consensus Estimate for sales is pegged at $2.07 billion, indicating a 5.1% improvement from the prior-year reported actuals.
Clean Energy Fuels CLNE is expected to report first-quarter 2024 results on May 9, after market close. It has an Earnings ESP of +6.25% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for earnings is pegged at a loss of 3 cents per share, which indicates a significant improvement from the year-earlier reported loss of 7 cents. The Zacks Consensus Estimate for sales is pegged at $106.6 million.
Algonquin Power & Utilities AQN is set to report first-quarter earnings on May 10, before market open. It has an Earnings ESP of +2.27% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for earnings is pegged at 15 cents per share. The consensus mark for sales is pinned at $807 million, indicating a 3.7% increase from the first-quarter 2023 reported number.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NiSource, Inc (NI) : Free Stock Analysis Report
Sempra Energy (SRE) : Free Stock Analysis Report
Clean Energy Fuels Corp. (CLNE) : Free Stock Analysis Report
Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report
