With a market cap of about $48.1 billion, California-based Sempra (SRE) is a leading energy infrastructure company, serving nearly 40 million consumers. Renowned for its sustainable business practices and a culture of safety and excellence, Sempra is at the forefront of electrification and operational efficiency. The company is all set to announce its fiscal Q2 earnings results on Thursday, August 1.
Ahead of this event, analysts expect the utility giant to report a profit of $1.03 per share, up 9.6% from $0.94 per share in the year-ago quarter. The company has surpassed or matched Wall Street’s bottom-line estimates in three of the last quarterly reports while missing on one other occasion. In its latest earnings release, the company posted an EPS of $1.34 on an adjusted basis, which missed the consensus estimates by a narrow margin.
For fiscal 2024, analysts expect SRE to report EPS of $4.80, up 4.1% from $4.61 recorded in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to climb another 6.8% annually to $5.12.
Shares of Sempra have surged 4% on a YTD basis, underperforming the broader S&P 500 Index’s ($SPX) gain of 17.2% over the same time frame. Plus, the stock’s single-digit gain also lags behind S&P 500 Utilities Sector SPDR’s (XLU) return of 10.7% during the same period.
On May 7, the company reported its Q1 earnings results, which fell short of Wall Street’s top and bottom-line estimates. During the quarter, Sempra faced substantial declines in its natural gas and energy segments, impacting its overall performance. Surprisingly, despite this weaker-than-expected performance, the stock jumped more than 1% post-Q1 announcement, driven by massive investor enthusiasm for utility stocks amid skyrocketing data center power demand.
Meanwhile, analysts' consensus rating on SRE stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 15 analysts covering the stock, opinions include ten "Strong Buys,” one "Moderate Buys," and four "Holds."
This consensus is slightly less bullish than three months ago, with 11 “Strong Buy” ratings on the stock. The average analyst price target for SRE is $83.75, suggesting a potential upside of just 7.8% from the current levels.
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