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Sempra Energy Set to Report Q2 Earnings: What's in the Offing?
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Key Takeaways
{\"0\":\"Sempra Energy is expected to post Q2 sales of $3.15B, up 4.7% year over year.\",\"1\":\"Higher consumption and tax benefits may aid earnings despite storm-related costs.\",\"2\":\"Infrastructure damage and rising interest expenses could pressure SRE\'s Q2 bottom line.\"}
The company delivered an earnings surprise of 19.01% in the last reported quarter. However, SRE has a negative four-quarter average earnings surprise of 2.07%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors at Play Ahead of SRE’s Q2 Results
The majority of SRE’s service territories experienced warmer-than-normal temperature patterns during the second quarter. This is likely to have boosted electricity demand from its customers for cooling purposes this spring, which must have bolstered the company’s top-line performance.
However, adverse weather events, including heavy rainfall and thunderstorms that hit Sempra Energy’s service areas, are likely to have caused outages for some of its customers, hurting the company’s revenues to some extent.
Nevertheless, the strong rate-based growth witnessed in the previous quarters, increasing infrastructure investments and customer growth must have boosted the company’s overall top-line performance.
From a cost perspective, the aforementioned adverse weather events might have caused infrastructural damage to Sempra Energy, increasing the company’s operating costs to repair the damage. This, along with higher interest expenses, is likely to have negatively impacted the company’s bottom-line performance.
However, solid sales expectations, increased consumption in Texas, higher income tax benefits in California, favorable returns from previous investments, along with the implementation of new interim rates, might have aided SRE’s earnings to some extent.
The Zacks Consensus Estimate for SRE’s sales is pegged at $3.15 billion, which indicates year-over-year growth of 4.7%.
The Zacks Consensus Estimate for earnings stands at 83 cents per share, which suggests a year-over-year decline of 6.7%.
What Our Model Predicts for SRE
Our proven model predicts 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 odds of an earnings beat, which is the case here, as you will see below.
Earnings ESP: SRE has an Earnings ESP of +0.60%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three other companies from the same sector that also have the right combination of elements to post an earnings beat this reporting cycle:
Southwest Gas (SWX - Free Report) is scheduled to report its second-quarter 2025 results on Aug. 6, before market open. It has an Earnings ESP of +8.00% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for sales is pegged at $1.21 billion, which calls for a 2.2% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 42 cents per share.
MDU Resources (MDU - Free Report) is set to release its second-quarter 2025 results on Aug. 7, before market open. It has an Earnings ESP of +20.00% and a Zacks Rank of 2 at present.
MDU’s (three to five years) earnings growth rate is 7%. The consensus estimate for earnings stands at 13 cents per share.
BCE Inc. (BCE - Free Report) is set to report second-quarter earnings on Aug. 7, before market open. It has an Earnings ESP of +0.97% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $4.32 billion. The consensus estimate for earnings stands at 52 cents per share.
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Sempra Energy Set to Report Q2 Earnings: What's in the Offing?
Key Takeaways
Sempra Energy (SRE - Free Report) is scheduled to release its second-quarter 2025 results on Aug. 7, before market open.
The company delivered an earnings surprise of 19.01% in the last reported quarter. However, SRE has a negative four-quarter average earnings surprise of 2.07%.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors at Play Ahead of SRE’s Q2 Results
The majority of SRE’s service territories experienced warmer-than-normal temperature patterns during the second quarter. This is likely to have boosted electricity demand from its customers for cooling purposes this spring, which must have bolstered the company’s top-line performance.
However, adverse weather events, including heavy rainfall and thunderstorms that hit Sempra Energy’s service areas, are likely to have caused outages for some of its customers, hurting the company’s revenues to some extent.
Nevertheless, the strong rate-based growth witnessed in the previous quarters, increasing infrastructure investments and customer growth must have boosted the company’s overall top-line performance.
From a cost perspective, the aforementioned adverse weather events might have caused infrastructural damage to Sempra Energy, increasing the company’s operating costs to repair the damage. This, along with higher interest expenses, is likely to have negatively impacted the company’s bottom-line performance.
However, solid sales expectations, increased consumption in Texas, higher income tax benefits in California, favorable returns from previous investments, along with the implementation of new interim rates, might have aided SRE’s earnings to some extent.
Sempra Energy Price and EPS Surprise
Sempra Energy price-eps-surprise | Sempra Energy Quote
Q2 Expectations for Sempra Energy
The Zacks Consensus Estimate for SRE’s sales is pegged at $3.15 billion, which indicates year-over-year growth of 4.7%.
The Zacks Consensus Estimate for earnings stands at 83 cents per share, which suggests a year-over-year decline of 6.7%.
What Our Model Predicts for SRE
Our proven model predicts 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 odds of an earnings beat, which is the case here, as you will see below.
Earnings ESP: SRE has an Earnings ESP of +0.60%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Sempra Energy carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three other companies from the same sector that also have the right combination of elements to post an earnings beat this reporting cycle:
Southwest Gas (SWX - Free Report) is scheduled to report its second-quarter 2025 results on Aug. 6, before market open. It has an Earnings ESP of +8.00% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for sales is pegged at $1.21 billion, which calls for a 2.2% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 42 cents per share.
MDU Resources (MDU - Free Report) is set to release its second-quarter 2025 results on Aug. 7, before market open. It has an Earnings ESP of +20.00% and a Zacks Rank of 2 at present.
MDU’s (three to five years) earnings growth rate is 7%. The consensus estimate for earnings stands at 13 cents per share.
BCE Inc. (BCE - Free Report) is set to report second-quarter earnings on Aug. 7, before market open. It has an Earnings ESP of +0.97% and a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for sales is pegged at $4.32 billion. The consensus estimate for earnings stands at 52 cents per share.