Sempra Energy Faces Mixed Results in Q3 Earnings Report

Sempra Energy's stock performance has been underwhelming despite a 7.3% rise following Q3 results. The company missed EPS estimates, yet reaffirmed future guidance. Investors remain cautious amid the broader market's strong performance.

Date: 10-02-2025

AI Rating: 5

Sempra Energy, operating under the ticker SRE, posted adjusted earnings of $0.89 per diluted share, which was below Wall Street expectations. This miss indicates challenges for the company as it seeks to improve its earnings trajectory.

Looking forward, Sempra updated its 2024 adjusted EPS guidance to a range of $4.60 to $4.90, while maintaining its 2025 guidance at $4.90 to $5.25. Analysts expect SRE’s EPS to grow 3.3% year-over-year to $4.76 for FY2024. However, it is worth noting that Sempra's earnings surprise history is not favorable, having met consensus estimates only once in the last four quarters.

The analyst sentiment for SRE is positive, with a consensus rating of “Strong Buy” derived from 13 Strong Buy ratings, two Moderate Buys, and three Holds. This suggests that analysts have a generally favorable outlook for the company despite its recent performance setbacks.

Furthermore, Barclays PLC recently reduced Sempra's price target from $99 to $95, while maintaining an Overweight rating. This reflects an optimistic view of the utility sector's ongoing demand growth.

Ratings Summary:

Earnings Per Share (EPS): 4 (Missed estimates, but guidance is maintained)
Return on Equity (ROE): Not mentioned in the report
Revenue Growth: Anticipated EPS growth of 3.3%
Profit Margins: Not explicitly provided
Free Cash Flow (FCF): Not detailed

Stocks: SRE BCS