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What's in the Cards for Sempra Energy (SRE) in Q4 Earnings?

Sempra Energy SRE is slated to report fourth-quarter and full-year 2022 results on Feb 28, before the opening bell.

In the last reported quarter, the company reported an earnings surprise of 10.06%. Sempra Energy has a trailing four-quarter earnings surprise of 6.88%, on average.

Factors to Note

In the fourth quarter, Sempra Energy’s service territories witnessed warmer-than-normal temperatures accompanied by drought conditions in most regions. Such weather patterns are likely to have boosted the electricity demand for cooling purposes among the company’s customers. This is expected to have contributed to revenues in the soon-to-be-reported quarter.

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However, its service territories experienced heavy snowfall during some time of the fourth quarter, which might have caused outage for its customers, thereby impacting the company’s overall fourth-quarter revenues.

Sempra Energy Price and EPS Surprise

Sempra Energy Price and EPS Surprise
Sempra Energy Price and EPS Surprise

Sempra Energy price-eps-surprise | Sempra Energy Quote

Meanwhile, growing requests for transmission interconnections in Oncor, buoyed by growing demand and penetration of renewables in its service territory, are likely to have favorably impacted Sempra Energy’s fourth-quarter top line.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.81 billion, indicating a 0.8% decline from the year-ago quarter’s reported figure.

From the cost perspective, the heavy snowfall might have caused infrastructural damage for Sempra Energy, thereby increasing the company’s operating expenses to repair the damage. This might have hurt the fourth-quarter bottom line.

Moreover, charges arising from final settlement of the 2015 Aliso Canyon natural gas storage facility leak might have had an adverse impact on SRE’s fourth-quarter earnings.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $2.06 per share, indicating a 4.7% decline from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for SRE 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.

Earnings ESP: The company’s Earnings ESP is +3.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Sempra Energy carries a Zacks Rank #3, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Utility Releases

CMS Energy Corporation CMS reported fourth-quarter 2022 adjusted EPS of 60 cents from continuing operations, which came in line with the Zacks Consensus Estimate. The reported figure improved 27.7% on a year-over-year basis.

For the quarter under review, CMS Energy’s operating revenues were $2,278 million, which surpassed the Zacks Consensus Estimate of $2,185.3 million by 4.2%. The top line improved 12.1% on a year-over-year basis.

NextEra Energy, Inc. NEE reported fourth-quarter 2022 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 50 cents by 2%. The bottom line was also up 24.4% from the prior-year quarter.

For the fourth quarter, NextEra’s operating revenues were $6,164 million, which surpassed the Zacks Consensus Estimate of $5,743 million by 7.3%. The top line improved 22.2% year over year.

Duke Energy Corporation DUK reported fourth-quarter 2022 adjusted earnings of $1.11 per share, which surpassed the Zacks Consensus Estimate of $1.06 by 4.7%. The bottom line also improved 26.1% year over year.

Total operating revenues came in at $7,351 million, which increased 20.2% from $6,117 million in the year-ago period. The reported top line also surpassed the Zacks Consensus Estimate of $6,608 million by 11.2%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report

Sempra Energy (SRE) : Free Stock Analysis Report

Duke Energy Corporation (DUK) : Free Stock Analysis Report

CMS Energy Corporation (CMS) : Free Stock Analysis Report

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