Sempra Energy To Gain From Investments Amid Operational Risks
Zacks Investment Research | Dec 05, 2018 09:00PM ET
We have recently issued an updated research report on Sempra Energy (NYSE:SRE) . The company’s third-quarter 2018 adjusted earnings per share (EPS) came in at $1.23, beating the Zacks Consensus Estimate of $1.13 by 8.8%.
Total revenues registered a 9.7% year-over-year growth on higher contributions from its Utilities and energy-related businesses.
Moving ahead, systematic investments in its infrastructure development projects are likely to fortify Sempra Energy’s position in the Utility space. For the 2018-2020 period, the company expects to incur capital expenditures and investments of approximately $15.2 billion.
Factors Influencing the Stock
In March 2018, Sempra Energy completed the acquisition of Oncor Electric Delivery Company, LLC (‘’Oncor’’) for $9.5 billion in cash. Following the deal, Texas’ largest electric transmission and distribution provider was added to Sempra Energy’s portfolio.
In a bid to expand and reinforce its transmission and distribution network, Sempra Energy has decided to support Oncor's plan of investing capital worth $10.5 billion for a five-year period. This, in turn, will enhance the service territory of Sempra Energy, expanding its opportunities to earn more profit.
Sempra Energy Price and Consensus/h3
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