) third quarter 2013 earnings per share came in at $1.19, missing
the Zacks Consensus Estimate of $1.21 by 1.7%. The quarterly
result was also below the year-ago adjusted profit of $1.33 by
10.5% mainly due to lower contribution from its San Diego Gas
& Electric business.
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Including one-time charges in the year-earlier quarter, the
company reported earnings of $1.19 per share in the third quarter
of 2013 versus $1.09 per share in the third quarter of 2012.
Total revenue of Sempra Energy in the quarter was $2,551.0
million, up 1.8% year over year. The top-line, however, missed
the Zacks Consensus Estimate by $94.0 million. The company's
utility operations generated revenues of $2,223.0 million (up
2.4% year over year), while its energy-related businesses
generated $328.0 million (down 2.7%).
San Diego Gas & Electric (SDG&E):
Quarterly earnings for San Diego Gas & Electric were $129.0
million compared with $174.0 million in the year-ago quarter. The
lower number primarily reflects lower authorized rate of return
for cost of capital and the loss of revenue from the San Onofre
Nuclear Generating Station (SONGS).
Southern California Gas Company (SoCalGas):
The segment generated earnings of $102.0 million, up from $71.0
million in third quarter 2012, backed by higher CPUC base
operating margin and a lower income tax rate.
Sempra South American Utilities:
The segment recorded earnings of $39.0 million, down marginally
from $40.0 million in the prior-year period.
The segment recorded earnings of $39.0 million, down from $42.0
million in third quarter 2012.
The segment recorded earnings of $37.0 million, up considerably
from $13.0 million in third quarter 2012. The improvement was
backed by gains related to the contribution of assets to the
50:50 solar joint venture with Consolidated Edison Development.
Sempra Natural Gas:
The segment narrowed its loss to $7.0 million from a loss of
$68.0 million in the prior-year period.
As of Sep 30, 2013, cash and cash equivalents were $1,061.0
million, up from $475 million as of Dec 31, 2012. Long-term debt
was $11,919 million (including current portion), down from
$12,346 million at 2012 end. During the first nine months of
2013, cash flow from operating activities was $1,330.0 million,
down from $1,688.0 million in the same period last year.
Sempra maintained its earnings per share guidance of $4.30 to
$4.60 per share. The company also pointed out that its earnings
for the last nine-month period were $838 million, or $3.37 per
diluted share excluding the charge related to SONGS.
For 2014, the company had previously set its expectation between
$4.25 and $4.55 per share. For 2017, Sempra anticipates earnings
of $5.10 to $5.60 per share. However, its earnings guidance
through 2017 does not take into account any major contribution
from its Cameron liquefied natural gas export project in
Louisiana. The project is not expected to be fully operational
until the end of 2018.
Sempra Energy presently retains a short-term Zacks Rank #3
(Hold). Stocks worth considering are
AGL Resources Inc.
Atmos Energy Corp.
Mdu Resources Group Inc.
), all with a Zacks Rank #2 (Buy).