Sempra Energy Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sempra Energy (NYSE:SRE) will unveil its latest earnings on Thursday, August 2, 2012. 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. .

Sempra Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 80 cents per share, a decline of 17.5% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting profit of $4.16 per share, a decline of 6.9% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 97 cents per share versus a mean estimate of profit of 96 cents per share.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

Stock Price Performance: Between May 2, 2012 and July 27, 2012, the stock price rose $6.98 (10.9%), from $63.88 to $70.86. The stock price saw one of its best stretches over the last year between October 12, 2011 and October 21, 2011, when shares rose for eight straight days, increasing 6.3% (+$3.21) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 2.4% (-$1.53) over that span.

A Look Back: In the first quarter, profit fell 8.5% to $238 million (97 cents a share) from $260 million ($1.07 a share) the year earlier, but exceeded analyst expectations. Revenue fell 2.1% to $2.38 billion from $2.43 billion.

Wall St. Revenue Expectations: Analysts predict a decline of 5% in revenue from the year-earlier quarter to $2.3 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 20.6% in the second quarter of the last fiscal year, 21.7% in the third quarter of the last fiscal year and 11%in the fourth quarter of the last fiscal year before dropping in the first quarter.

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose more than twofold in the second quarter of the last fiscal year, more than twofold in the third quarter of the last fiscal year and 3.9% in the fourth quarter of the last fiscal year before declining in the first quarter.

Analyst Ratings: With four analysts rating the stock as a buy, none rating it as a sell and four rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.51 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.56 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 7.6% to $4.48 billion while assets decreased 1.5% to $2.3 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

American Express Stock: Buy, Sell, or Stay Away?

Fed Chatter and Caterpillar Outlook LIFT Gold and Silver>>

Bank Of America Shares: BUY or SELL?