Sempra Energy (SRE) to Post Q2 Earnings: What's in the Offing?

Core Viewpoint - Sempra Energy (SRE) is expected to report its second-quarter 2024 results on August 6, with a prior negative earnings surprise of 0.74% but a four-quarter average earnings surprise of 3.87% [1] Factors at Play - Warmer-than-normal temperatures and drought conditions in SRE's service territories likely increased electricity demand for cooling, positively impacting overall revenue [2] - Adverse weather events, including severe storms and tornadoes, may have caused outages for some customers, potentially negatively affecting revenues [3] - Increased operational and maintenance expenses due to infrastructural damage from adverse weather, along with higher interest expenses, are expected to negatively impact the bottom line [4] - Strong sales expectations and favorable returns from previous investments are anticipated to support earnings growth in the second quarter [5] Q2 Expectations - The Zacks Consensus Estimate for SRE's second-quarter sales is $3.52 billion, reflecting a 5.6% increase from the previous year [6] - The estimated earnings for Sempra Energy in the second quarter is 98 cents per share, indicating a 4.3% rise from the same quarter in 2023 [6] Earnings Prediction Model - The current model does not predict an earnings beat for SRE, with an Earnings ESP of -5.80% and a Zacks Rank of 2 (Buy) [7][8]