Sempra Energy Q1 2024 Earnings Report: Texas Growth Story Steals the Show

Wells Fargo's Sarah Akers raised their price target on Sempra (NYSE: SRE) by 6.3% from $79 to $84 on May 8, 2024. The analyst maintained their Strong Buy rating on the stock.

Sempra Energy, an energy services company, recently reported its first-quarter earnings for 2024. Akers summed up the results by highlighting the robust demand growth story in Texas and the company's filing for a $3 billion SRP. She stated, "with solid results and guidance intact, the Texas growth story stole the show."

In terms of financial performance, Sempra Energy reported earnings per share (EPS) of $1.34 for Q1 2024. This missed the Zacks Consensus Estimate of $1.35 and was 8.2% lower than Q1 2023's $1.46. Additionally, the company reported revenue of $3.64 billion, which fell short of the Zacks Consensus Estimate by 41.04% and was 44.5% lower than Q1 2023's $6.56 billion.

Looking ahead, management provided guidance for the fiscal year 2024. They updated the GAAP EPS range to $4.52 to $4.82, reflecting Q1's actual results. The adjusted EPS range remains unchanged at $4.60 to $4.90. For FY 2025, the company expects EPS in the range of $4.90 to $5.25. Management also reiterated its long-term EPS growth rate of 6% to 8%.

Chairman & CEO Jeffrey W. Martin expressed optimism about Sempra's performance, stating, "At Sempra, we are off to a great start in 2024. We are seeing strong economic growth in our core markets with increased interest in renewables, electric vehicles, digital infrastructure, and the continued electrification of the economy."

Analyst ratings for Sempra Energy are overwhelmingly positive, with 85.7% of top-rated analysts currently rating SRE as a Strong Buy or Buy. Only 14.3% see it as a Hold, and no analysts recommend or strongly recommend selling the stock.

The consensus forecast among analysts is that Sempra Energy will deliver earnings per share (EPS) of $4.78 for the upcoming year. If the analysts' predictions hold true, SRE's next yearly EPS will be up by 5.5% on a year-over-year basis.

Since Sempra Energy's latest quarterly report on May 7, 2024, the stock price has increased by 1.7%. However, on a year-over-year basis, the stock is down 2.9%. During the same period, Sempra Energy has been trailing the S&P 500, which has experienced a decline of 25.4%.

Sarah Akers, the Wells Fargo analyst who raised the price target on Sempra Energy, is ranked in the top 10% of Wall Street analysts by WallStreetZen. With an average return of 9.3% and a 74.3% win rate, Akers specializes in the Industrials, Technology, and Utilities sectors.

Sempra Energy, headquartered in San Diego, California, serves as an energy services company. Its subsidiaries, San Diego Gas & Electric Company and Southern California Gas Company, provide electric and natural gas services to millions of users in the region.

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