Sempra Energy SRE is set to report third-quarter 2019 results on Nov 1, before market open.
In the last reported quarter, the company delivered a negative earnings surprise of 7.56%. However, its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 5.26%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Sempra Energy’s service territories witnessed above-average temperatures for most parts of the third quarter. As a result, increased electricity demand in its service territory might have boosted the company’s top line.
However, throughout the third quarter, Sempra Energy experienced severe wildfire across California. Since July, numerous fires broke out across the region, many of which continued till August. Several new fires also erupted in September. These led to significant power outages during the quarter, which is likely to show on the company's top line in the upcoming quarterly results.
For quarterly revenues, the Zacks Consensus Estimate stands at $2.92 billion, suggesting a 0.6% drop from the year-ago quarter’s reported figure.
In May, Sempra Energy’s subsidiary, Oncor, acquired 100% of the equity interests of InfraREIT Inc, for approximately $1.28 billion. The company expects this acquisition to be accretive to earnings and hence this is likely to have contributed to its bottom line in the third quarter. Additionally, an anticipated increase in pipeline activities might have favorably impacted the bottom line.
In line with such developments, the Zacks Consensus Estimate for third-quarter earnings is pegged at $1.49 per share, indicating 21.1% growth from the year-ago quarter’s reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Sempra Energy this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Sempra Energy has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sempra Energy Price and EPS Surprise
Sempra Energy price-eps-surprise | Sempra Energy Quote
Stocks That Warrant a Look
Here are a few other players from the Utilities sector that have the right combination of elements to post an earnings beat this quarter.
PPL Corporation PPL is scheduled to release third-quarter 2019 results on Nov 5. It has an Earnings ESP of +1.37% and a Zacks Rank of 3.
Exelon Corporation EXC has an Earnings ESP of +0.06% and a Zacks Rank #3. The company is scheduled to release third-quarter 2019 results on Oct 31.
Eversource Energy ES is scheduled to release third-quarter 2019 results on Nov 6. It has an Earnings ESP of +1.06% and a Zacks Rank of 2.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PPL Corporation (PPL): Free Stock Analysis Report
Exelon Corporation (EXC): Free Stock Analysis Report
Sempra Energy (SRE): Free Stock Analysis Report
Eversource Energy (ES): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.