Sempra (SRE) Q2 Earnings and Revenues Lag Estimates

Core Insights - Sempra reported quarterly earnings of $0.89 per share, missing the Zacks Consensus Estimate of $0.92 per share, and down from $0.94 per share a year ago, representing an earnings surprise of -3.26% [1] - The company posted revenues of $3.01 billion for the quarter ended June 2024, missing the Zacks Consensus Estimate by 14.54%, and down from $3.34 billion year-over-year [2] - Sempra has only surpassed consensus EPS estimates once in the last four quarters and has not beaten consensus revenue estimates during the same period [2] Earnings Outlook - The sustainability of Sempra's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3] - The current consensus EPS estimate for the upcoming quarter is $1.11 on revenues of $3.81 billion, and for the current fiscal year, it is $4.79 on revenues of $15.08 billion [7] Industry Context - The Utility - Gas Distribution industry, to which Sempra belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that Sempra's stock may outperform the market based on its current Zacks Rank of 2 (Buy) [5][6]