Sempra Misses Earnings, Tops Revs - Analyst Blog

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Sempra Energy 's ( SRE ) second quarter 2013 adjusted earnings per share came in at $1.04, missing the Zacks Consensus Estimate of $1.36. However, the quarterly result was ahead of the year-ago profit of 98 cents by 6.1% backed by strong performance across all its businesses.

Including one-time charges in both the quarters, the company reported earnings of 98 cents per share in the second quarter of 2013 versus 25 cents per share in the second quarter of 2012.

Total Revenue

Total revenue of Sempra Energy in the second quarter of 2013 was $2,651 million, up 26.9% year over year. The top-line comfortably surpassed the Zacks Consensus Estimate by $208 million.

Segment Update

San Diego Gas & Electric (SDG&E): Quarterly earnings for San Diego Gas & Electric were $65 million compared with $95 million in the year-ago quarter.  The lower number primarily reflects the $119 million charge digested in the second quarter 2013 due to the announced closure of the San Onofre Nuclear Generating Station (SONGS).

Southern California Gas Company (SoCalGas): The segment generated earnings of $118 million, up from $53 million in second quarter 2012.

Sempra South American Utilities: The segment recorded earnings of $34 million, down from $38 million in the prior-year period.   

Sempra Mexico: The segment recorded earnings of $26 million, down from $47 million in second quarter 2012.

Sempra Renewables: The segment recorded earnings of $15 million, down from $24 million in second quarter 2012. The decline reflects lower tax benefits from solar projects.

Sempra Natural Gas: The segment recorded earnings of $9 million versus a loss of $193 million in the prior-year period.

Financial Update

As of Jun 30, 2013, cash and cash equivalents were $954 million, up from $475 million as of Dec 31, 2012. Long-term debt was $12,070 million, down from $12,346 million at 2012 end. During the first six months of 2013, cash flow from operating activities was $1,105 million, down from $1,152 million in same period last year.

Guidance

Recently, Sempra lowered the high end of its 2013 guidance range of to a band of $4.30 to $4.60 per share from 4.30 to $4.80 per share earlier.

For 2014, the company 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 involve any major contribution from its Cameron liquefied natural gas export project in Louisiana. The project is not expected to be operational fully until the end of 2018.

Zacks Rank

Sempra Energy presently retains a short-term Zacks Rank #3 (Hold). Stocks worth considering are AGL Resources Inc. ( GAS ), National Fuel Gas Company ( NFG ) and Questar Corporation ( STR ), all with a Zacks Rank #2 (Buy).



AGL RESOURCES (GAS): Free Stock Analysis Report

NATL FUEL GAS (NFG): Free Stock Analysis Report

SEMPRA ENERGY (SRE): Free Stock Analysis Report

QUESTAR (STR): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: GAS , NFG , SRE , STR

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