Sempra Energy Set to Report Q1 Earnings: What's in the Offing?

Core Viewpoint - Sempra Energy (SRE) is expected to report its first-quarter 2025 results on May 8, with a negative earnings surprise of 7.98% in the last quarter and a negative four-quarter average earnings surprise of 7.01% [1] Factors Impacting Q1 Results - Warmer-than-normal temperatures in the first two months of the January-March quarter likely reduced electricity demand for heating, negatively impacting top-line performance, although near-average temperatures in March may have moderated this effect [2] - Adverse weather events, including wildfires and heavy rainfall, caused outages for customers, which likely hurt revenues, but rising electricity demand in California due to infrastructure investments and customer growth may have partially offset this [3] - Increased operational and maintenance expenses due to infrastructural damage from weather events, along with higher insurance premiums and lower income tax benefits, are expected to negatively impact bottom-line performance [4] - A recent unfavorable California rate case decision led to a reduction in 2025 earnings expectations, which may inhibit growth in first-quarter earnings, although solid sales expectations and favorable returns from previous investments could provide some support [5] Q1 Expectations - The Zacks Consensus Estimate for SRE's sales is $3.85 billion, indicating a year-over-year growth of 5.7%, while the earnings estimate is $1.21 per share, suggesting a year-over-year decline of 9.7% [6] Earnings Prediction Model - The current model does not predict an earnings beat for SRE, as the combination of a positive Earnings ESP of +11.05% and a Zacks Rank of 4 (Sell) does not support an earnings surprise [7][8]