Sempra Energy Earnings: Tops Analysts’ Expectations

S&P 500 (NYSE:SPY) component Sempra Energy (NYSE:SRE) reported net income above Wall Street’s expectations for the third quarter. Sempra Energy is an energy services holding company. With its subsidiaries, the company provides electric, natural gas and other energy-rated products and services worldwide. It also focuses on developing energy infrastructure and operating utilities.

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Sempra Energy Earnings Cheat Sheet

Results: Net income for the utility-gas distribution rose to $290 million ($1.09 per share) vs. $289 million ($1.20 per share) in the same quarter a year earlier. This marks a rise of 0.3% from the year-earlier quarter.

Revenue: Fell 2.7% to $2.51 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Sempra Energy reported adjusted net income of $1.33 per share. By that measure, the company beat the mean estimate of $1 per share. It beat the average revenue estimate of $2.33 billion.

Quoting Management: “Our solid operating performance in the third quarter and through the first nine months keeps us on track to meet our 2012 earnings-per-share guidance of $4 to $4.30, excluding the impairment charges and assuming a final California Public Utilities Commission rate decision for our California utilities comes by year-end,” said Debra L. Reed, chief executive officer of Sempra Energy.

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 18 cents in the second quarter, by one cent in the first quarter, and by 14 cents in the fourth quarter of the last fiscal year.

Revenue has fallen for the past three quarters. In the second quarter, revenue declined 13.7% to $2.09 billion while the figure fell 2.1% in the first quarter from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.30 per share, down from $1.45 ninety days ago. Over the past sixty days, the average estimate for the fiscal year has reached $4.19 per share, a decline from $4.22.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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