SRE Earnings Prediction
The chart below shows how SRE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SRE sees a -0.76% change in stock price 10 days leading up to the earnings, and a +1.94% change 10 days following the report. On the earnings day itself, the stock moves by -0.22%. This data can give you a slight idea of what to expect for the next quarter's release.
SRE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.78B
-16.74%
-7.80%
Gross Margin
70.14%
8.01%
2.47%
Operating Margin
16.07%
-12.62%
-15.42%
Net Margin
27.34%
6.76%
-5.50%
EPS
1.00
-12.28%
-10.71%
No Data Available
SRE Earnings Analysis
Sempra Corporation (SRE.N) Earnings Conference Call
Positive
Adjusted EPS Performance: 1. Strong Adjusted EPS Growth: Sempra reported an adjusted EPS of $0.89 for Q3 2024, with a year-to-date adjusted EPS of $3.12, affirming their full-year guidance for 2024 and 2025.
Texas Load Growth Projections: 2. Significant Load Growth in Texas: Oncor anticipates a 5% load growth between 2024 and 2025, with ERCOT projecting an 80% increase in power demand by 2030 from recent peak levels.
Capital Investment Expansion: 3. Robust Capital Investment Plans: Oncor's $24 billion five-year capital plan is expected to see a 40% to 50% increase due to ongoing economic expansion and customer growth in Texas.
Peak Electric Demand Record: 4. Record Electric Demand: SDG&E achieved a new all-time peak demand of over 5 gigawatts in September, driven by the electrification of the Southern California economy and a high penetration of EVs.
LNG Export Performance: 5. Strong LNG Export Position: Sempra Infrastructure loaded 140 cargoes year-to-date at Cameron LNG, with expectations for continued strong performance and significant demand growth in Asian LNG markets.
Negative
Earnings Decline Report: 1. Declining Earnings: Sempra reported third quarter 2024 adjusted earnings of $0.89 per share, down from $1.08 per share in the same quarter of 2023, reflecting a decrease of 17.6%.
Decline in GAAP Earnings: 2. Lower GAAP Earnings: The company’s GAAP earnings for Q3 2024 were $638 million or $1.00 per share, compared to $721 million or $1.14 per share in Q3 2023, indicating a decline of 11.5%.
Rising Operating Expenses Impact: 3. Increased Operating Expenses: Sempra Texas experienced a $44 million decrease in equity earnings due to higher interest and operating expenses, alongside lower consumption.
Cost of Capital Impact: 4. Negative Impact from Cost of Capital Decision: The final decision in California's cost of capital proceeding resulted in a 42 basis point reduction in ROEs, negatively affecting future earnings potential.
California Rate Case Decision: 5. Pending GRC Decision: The proposed decision in California's general rate case includes a 10.5% revenue increase for SDG&E, but critical safety investments remain unaddressed, potentially impacting future operational efficiency.
SRE FAQs
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SRE Earning Call Sentiment
Sempra (SRE) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SRE.N
-0.68%Positive
The earnings call reveals several concerns: declining EPS and GAAP earnings, challenges from aging infrastructure, extreme weather, regulatory issues, and supply chain disruptions. The at-the-market equity program indicates potential dilution, and management's evasive responses in the Q&A raise uncertainty. While there is some positive guidance, the financial performance and risks outweigh it, suggesting a negative stock price movement.