Sempra’s Q4 Earnings Anticipated Amid Analyst Optimism

Sempra is expected to report Q4 earnings with a profit per share forecast of $1.54. Analysts are bullish, suggesting a ‘Strong Buy’ rating overall, signaling potential market strength despite past misses on earnings estimates.

Date: 21-01-2025

AI Rating: 6

Profit Margins and EPS Analysis
Sempra is set to announce its Q4 earnings, with analysts expecting a profit of $1.54 per share, which shows a significant increase of 36.3% compared to $1.13 per share for the corresponding quarter last year. Although this projected EPS is promising, it is important to note that Sempra has missed Wall Street's bottom-line estimates in three out of the last four quarters, which raises concerns about consistent performance.

For fiscal 2024, the adjusted EPS is projected at $4.77, a 3.5% increase from $4.61 in fiscal 2023. Furthermore, for fiscal 2025, analysts anticipate an additional growth of 8% to an EPS of $5.15. This gradual uptick in earnings expectations could reflect positively on investor confidence if Sempra manages to meet or exceed these estimates.

Sempra's stock performance is also noted, with a year-over-year gain of 15.8%, albeit lagging behind the S&P 500 Index gains of 26.5%. The consensus opinion among analysts remains very bullish, with a strong recommendation of ‘Strong Buy’ from the majority of analysts covering the stock. The mean price target of $95.47 suggests a potential upside of 12.1% from current levels, which adds an element of optimism regarding the stock's future performance.

Market Concerns
However, the company's stock recently experienced a dip of more than 2% as fears related to accountability for potential risks associated with the Southern California wildfires emerged. Such events can affect investor sentiment and stock performance in the short term, adding uncertainty ahead of the upcoming earnings announcement.

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