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What's in the Cards for Sempra (SRE) This Earnings Season?

Sempra Energy SRE is slated to report first-quarter 2023 results on May 4 before the opening bell.

In the last reported quarter, the company reported an earnings surprise of 14.08%. Sempra Energy has a trailing four-quarter earnings surprise of 8.67%, on average.

Factors to Note

In the first quarter, some parts of Sempra Energy’s service territories witnessed warmer-than-normal temperatures accompanied by drought conditions in most regions. Such weather patterns are likely to have dampened the electricity demand for heating purposes among the company’s customers in winter. This is expected to have negatively impacted revenues in the soon-to-be-reported quarter.

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However, some parts of its service territories experienced cooler-than-normal temperatures, which might have increased the electricity demand for heating purposes among SRE’s customers. This is likely to have benefited the company’s overall first-quarter revenues.

Meanwhile, mounting transmission interconnection requests in Oncor are likely to have benefited Sempra Energy’s first-quarter revenues.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $4.03 billion. This indicates a 5.5% increase 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 first-quarter bottom line.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.76 per share. This calls for a 5.2% decline from the prior-year reported figure.

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

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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

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:

New Jersey Resources Corporation NJR has an Earnings ESP of +1.67% and a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter sales, pegged at $958.4 million, implies growth of 5.1% from the prior-year quarter’s tally.

NJR has a four-quarter negative earnings surprise of 22.48%. The Zacks Consensus Estimate for its first-quarter earnings is pegged at $1.20 per share, suggesting a decline of 11.8% from the prior-year period.

Northwest Natural Holding Company NWN has an Earnings ESP of +5.46% and a Zacks Rank #3. The Zacks Consensus Estimate for its first-quarter earnings is pegged at $1.93 per share, calling for growth of 7.2% from the prior-year reported figure.

The Zacks Consensus Estimate for NWN’s first-quarter sales is pegged at $384.8 million. This suggests a 9.8% increase from the prior-year reported figure.

PPL Corporation PPL has an Earnings ESP of +7.69% and a Zacks Rank #3. The Zacks Consensus Estimate for PPL Corporation’s first-quarter revenues is pegged at $1.86 billion, implying growth of 4.2% from the year-ago quarter.

The Zacks Consensus Estimate for PPL’s first-quarter earnings is pegged at 42 cents per share. This indicates growth of 2.4% from the prior-year reported figure.

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

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PPL Corporation (PPL) : Free Stock Analysis Report

Sempra Energy (SRE) : Free Stock Analysis Report

Northwest Natural Gas Company (NWN) : Free Stock Analysis Report

NewJersey Resources Corporation (NJR) : Free Stock Analysis Report

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