Why Is Sempra (SRE) Up 1.7% Since Last Earnings Report?

Core Viewpoint - Sempra's recent earnings report indicates a decline in both earnings and revenues, raising concerns about future performance as estimates trend downward [2][3][6]. Financial Performance - Sempra reported Q1 2024 adjusted EPS of $1.34, missing the Zacks Consensus Estimate of $1.35 by 0.7% and down 8.2% from $1.46 in Q1 2023 [2]. - Total revenues for the quarter were $3.64 billion, a significant decline of 44.5% from $6.66 billion in the same quarter last year, and missed the consensus estimate of $6.17 billion by 41% [3]. Segmental Update - Sempra California reported earnings of $582 million, down from $618 million year-over-year [4]. - Sempra Texas Utility saw an increase in earnings from $83 million to $183 million compared to the previous year [4]. - Sempra Infrastructure's earnings decreased to $131 million from $315 million year-over-year [4]. - The Parent and Other segment reported a loss of $95 million, wider than the loss of $47 million in the prior year [4]. Financial Update - As of March 31, 2024, Sempra's cash and cash equivalents increased to $606 million from $236 million at the end of 2023 [5]. - Long-term debt and finance leases rose to $29.52 billion from $27.76 billion over the same period [5]. - Cash flow from operating activities decreased from $1.98 billion in Q1 2023 to $1.85 billion in Q1 2024 [5]. Guidance - Sempra reiterated its 2024 earnings projection of $4.60-$4.90 per share, with the Zacks Consensus Estimate at $4.82 per share [6]. - The company also reaffirmed its 2025 earnings guidance of $4.90-$5.25 per share and expects a long-term EPS growth rate of 6-8% [6]. Market Outlook - Estimates for Sempra have been trending downward, indicating a potential decline in stock performance [8]. - The company holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [8]. Industry Comparison - Sempra operates within the Zacks Utility - Gas Distribution industry, where National Fuel Gas (NFG) has seen a slight gain of 0.8% over the past month [9]. - National Fuel Gas reported revenues of $629.94 million, reflecting a year-over-year decline of 12.2%, with an EPS of $1.79 compared to $1.54 a year ago [9].