It's shaping up to be a tough period for Sempra (NYSE:SRE), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. Sempra reported an earnings miss, with US$13b revenues falling 16% short of analyst models, and statutory earnings per share (EPS) of US$4.42 also coming in slightly below expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Sempra

After the latest results, the 14 analysts covering Sempra are now predicting revenues of US$17.2b in 2025. If met, this would reflect a sizeable 30% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 9.7% to US$4.75. In the lead-up to this report, the analysts had been modelling revenues of US$17.0b and earnings per share (EPS) of US$5.14 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target fell 9.3% to US$85.13, with the analysts clearly linking lower forecast earnings to the performance of the stock price. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sempra, with the most bullish analyst valuing it at US$96.00 and the most bearish at US$72.00 per share. This is a very narrow spread of estimates, implying either that Sempra is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sempra's rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 6.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sempra to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sempra. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Sempra going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 3 warning signs for Sempra (1 is a bit concerning!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.