Sempra Energy (SRE) To Report Q3 Earnings: What's In Store?
Zacks Investment Research | Oct 29, 2019 08:24AM ET
Sempra Energy (NYSE:SRE) is set to report third-quarter 2019 results on Nov 1, before market open.
In the last reported quarter, the company delivered a negative earnings surprise of 7.56%. However, its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 5.26%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Sempra Energy’s service territories witnessed above-average temperatures for most parts of the third quarter. As a result, increased electricity demand in its service territory might have boosted the company’s top line.
However, throughout the third quarter, Sempra Energy experienced severe wildfire across California. Since July, numerous fires broke out across the region, many of which continued till August. Several new fires also erupted in September. These led to significant power outages during the quarter, which is likely to show on the company's top line in the upcoming quarterly results.
For quarterly revenues, the Zacks Consensus Estimate stands at $2.92 billion, suggesting a 0.6% drop from the year-ago quarter’s reported figure.
In May, Sempra Energy’s subsidiary, Oncor, acquired 100% of the equity interests of InfraREIT Inc, for approximately $1.28 billion. The company expects this acquisition to be accretive to earnings and hence this is likely to have contributed to its bottom line in the third quarter. Additionally, an anticipated increase in pipeline activities might have favorably impacted the bottom line.
In line with such developments, the Zacks Consensus Estimate for third-quarter earnings is pegged at $1.49 per share, indicating 21.1% growth from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Sempra Energy this season. The combination of a positive Zacks Investment Research
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