Sempra Energy's stock plummeted around 19.58% on Tuesday after the utility company lowered its 2025 earnings guidance and reported weaker-than-expected Q4 2024 results, citing high costs and challenges.
The San Diego-based company reported Q4 adjusted earnings per share of $1.50, missing the consensus estimate of $1.60. Revenue for the quarter also fell short, coming in at $3.76 billion versus expectations of $4.36 billion.
More concerning for investors was Sempra's lower 2025 earnings guidance. The company now expects 2025 EPS in the range of $4.30-$4.70, down from its previous outlook of $4.90-$5.25. The lowered guidance missed the consensus estimate of $5.15 for 2025.
Sempra attributed the weaker guidance to high costs and challenges it is facing. The company also issued a 2026 EPS forecast range of $4.80-$5.30, which was below the consensus estimate of $5.56.
The disappointing results and guidance sent Sempra shares plunging around 19.58% in pre-market trading on Tuesday. The steep sell-off reflects concerns about the company's ability to manage costs and meet earnings expectations amid the challenging environment.