Sempra (SRE) Q2 Earnings Miss Estimates, Revenues Decline Y/Y

Core Viewpoint - Sempra Energy reported a decline in adjusted earnings per share (EPS) for the second quarter of 2024, missing consensus estimates and showing a year-over-year decrease in both adjusted and GAAP earnings [1][2]. Financial Performance - Adjusted EPS for Q2 2024 was 89 cents, missing the Zacks Consensus Estimate of 92 cents by 3.3% and down 5.3% from 94 cents in the same quarter last year [1]. - Total revenues for the quarter were $3.01 billion, a decline of 9.79% from $3.34 billion in the prior-year quarter, and missed the consensus estimate of $3.52 billion by 14.5% [2]. Segmental Update - Sempra California reported earnings of $316 million, down from $339 million in the prior-year quarter [3]. - Sempra Texas Utility saw an increase in earnings from $160 million to $202 million year-over-year [3]. - Sempra Infrastructure recorded earnings of $291 million, up from $208 million in the same quarter last year [3]. - The Parent and Other segment reported a loss of $96 million, which was an improvement from a loss of $104 million in the prior-year period [3]. Financial Update - As of June 30, 2024, cash and cash equivalents totaled $228 million, a slight decrease from $236 million as of December 31, 2023 [4]. - Long-term debt and finance leases increased to $28.97 billion from $27.76 billion as of December 31, 2023 [4]. - Cash flow from operating activities decreased from $3.74 billion in the first half of 2023 to $2.52 billion in the first half of 2024 [4]. Guidance - Sempra anticipates 2024 earnings in the range of $4.60-$4.90 per share, with the Zacks Consensus Estimate at $4.79 per share [5]. - For 2025, the company expects earnings to be in the range of $4.90-$5.25 per share, with the consensus estimate at $5.13 per share [5]. - The company maintains a long-term EPS growth rate expectation of 6-8% [5].