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Sempra Energy (SRE) to Post Q1 Earnings: What's in the Cards?

Sempra Energy SRE is slated to report first-quarter 2022 results on May 5 before the opening bell.

In the last reported quarter, the company reported an earnings surprise of 6.93%. Sempra has a trailing four-quarter earnings surprise of 3.99%, on average.

Factors to Note

In the January-March 2022 quarter, the majority of the company’s service territories experienced warmer-than-normal temperatures accompanied by dry weather conditions. Such a temperature pattern might have had an adverse impact on the company’s revenues in the soon-to-be-reported quarter.

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

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Nevertheless, favorable rate updates from the recent past must have boosted the overall top- line performance of Sempra Energy in the first quarter.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.42 billion, suggesting growth of 4.9% from the year-ago quarter’s reported figure.
Positive returns from invested capital in infrastructure and customer growth are likely to have boosted Sempra’s Q1 bottom line. However, wildfire mitigation costs might have had some adverse impact on the overall earnings performance during the first quarter, with the company’s service areas being prone to wildfire activities.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $2.79 per share, indicating a decline of 5.4% 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. 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. However, this is not the case here.

Earnings ESP: SRE’s Earnings ESP is -0.45%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Sempra currently carries a Zacks Rank #3.

Stocks to Consider

Here are three Utilities players you may want to consider, as these have the right combination of elements to post an earnings beat this season:

BCE BCE has an Earnings ESP of +3.14% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 4.5%.

The Zacks Consensus Estimate for BCE’s first-quarter revenues and earnings is pegged at $4.60 billion and 64 cents per share, respectively. BCE has a four-quarter average earnings surprise of 5.94%.

Telephone and Data Systems TDS has an Earnings ESP of +34.62% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Telephone and Data Systems’ first-quarter revenues and earnings is pegged at $1.34 billion and 26 cents, respectively. TDS has a four-quarter average earnings surprise of 42.61%.

Dominion Energy D has an Earnings ESP of +0.42% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for Dominion Energy’s first-quarter revenues and earnings is pegged at $4.28 billion and $1.19, respectively. D has a four-quarter average earnings surprise of 1.09%.

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


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Sempra Energy (SRE) : Free Stock Analysis Report

Dominion Energy Inc. (D) : Free Stock Analysis Report

BCE, Inc. (BCE) : Free Stock Analysis Report

Telephone and Data Systems, Inc. (TDS) : Free Stock Analysis Report

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