Sempra Energy's Q1 Earnings Beat Estimates, Revenues Increase Y/Y

Core Viewpoint - Sempra Energy reported strong first-quarter 2025 adjusted earnings per share (EPS) of $1.44, exceeding expectations and showing year-over-year growth [1] Financial Performance - Total revenues for Sempra Energy reached $3.80 billion, a 4.5% increase from $3.64 billion in the previous year, driven by higher contributions from Natural gas and Electric business units, although it fell short of the consensus estimate of $3.85 billion by 1.2% [2] - The company generated GAAP earnings of $1.39 per share, up from $1.26 in the first quarter of 2024 [1] Segmental Update - Sempra California reported quarterly earnings of $724 million, an increase from $582 million in the prior-year quarter [3] - Sempra Texas Utility saw a decline in earnings from $183 million to $146 million [3] - Sempra Infrastructure's earnings rose to $146 million from $131 million [3] - The Parent and Other segment reported a loss of $110 million, wider than the previous year's loss of $95 million [3] Financial Update - As of March 31, 2025, cash and cash equivalents totaled $1.74 billion, up from $1.57 billion at the end of 2024 [4] - Long-term debt and finance leases increased to $33.29 billion from $31.56 billion [4] - Cash flow from operating activities decreased from $1.85 billion in Q1 2024 to $1.48 billion in Q1 2025 [4] Guidance - Sempra Energy reaffirmed its 2025 adjusted EPS guidance of $4.30-$4.70, with the Zacks Consensus Estimate at $4.69 per share [5] - The company expects 2026 earnings to be in the range of $4.80-$5.30 per share, with the consensus estimate at $5.17 per share [5] - The long-term EPS growth rate is now expected to be at the high end or above the previously projected range of 7-9% through 2029 [6] Zacks Rank - Sempra currently holds a Zacks Rank of 4 (Sell) [7]