Sempra Energy Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Sempra Energy (NYSE:SRE) will unveil its latest earnings on Tuesday, November 6, 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 estimate of analysts is for net income of $1 per share, a decline of 18% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.06. Between one and three months ago, the average estimate moved down. It has risen from 96 cents during the last month. For the year, analysts are projecting profit of $4.19 per share, a decline of 6.3% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 18 cents, coming in at net income of 98 cents a share versus the estimate of profit of 80 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit fell 87.7% to $63 million (25 cents a share) from $514 million ($2.12 a share) the year earlier, but exceeded analyst expectations. Revenue fell 13.7% to $2.09 billion from $2.42 billion.

Wall St. Revenue Expectations: Analysts are projecting a decline of 10.1% in revenue from the year-earlier quarter to $2.32 billion.

Stock Price Performance: Between September 5, 2012 and October 31, 2012, the stock price had risen $4.01 (6.1%), from $65.74 to $69.75. The stock price saw one of its best stretches over the last year between September 27, 2012 and October 8, 2012, when shares rose for eight straight days, increasing 4.4% (+$2.85) 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.

Key Stats:

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 8.5% in the first quarter and then again in the second quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 2.1% in the first quarter and dropped again in the second quarter.

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

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.46 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.

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

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