Sempra Energy SRE is scheduled to release fourth-quarter 2024 results on Feb. 25, before market open.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

This utility company delivered a negative earnings surprise of 16.04% in the last reported quarter. Its trailing four-quarter negative earnings surprise is 5.01%, on average.

Let’s discuss the factors that are likely to affect the upcoming quarterly results.

Factors to Consider Ahead of SRE’s Results

SRE’s service territories witnessed above-normal weather patterns for the majority of the fourth quarter. This is likely to have hurt electricity demand from its customers for heating purposes this winter, thereby adversely affecting the company’s top-line performance.

Nevertheless, soaring electricity demand from Texas and California backed by increasing infrastructure investments, favorable outcomes from prior general rate cases, notable customer growth and surging natural gas demand are likely to have boosted SRE’s top-line performance.

Solid revenue expectations and valuable returns from earlier invested capital are expected to have contributed favorably to SRE’s bottom line.

However, higher interest and operating expenses are likely to have impacted its bottom-line performance to some extent.

Sempra Energy Price and EPS Surprise

Sempra Energy price-eps-surprise | Sempra Energy Quote

SRE’s Q4 Expectation

The Zacks Consensus Estimate for SRE’s sales is pegged at $4.89 billion, which indicates year-over-year growth of 40%.

The consensus estimate for earnings is pegged at $1.63 per share, which indicates year-over-year growth of 44.3%.

What Our Model Predicts for SRE

Our proven model does not conclusively predict an earnings beat for SRE this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as seen below.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Utility Releases

NextEra Energy, Inc. NEE reported fourth-quarter 2024 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate of 51 cents by 3.9%. The company reported operating revenues of $5.38 billion, which lagged the consensus estimate of $6.49 billion by 17%.

WEC Energy Group WEC reported fourth-quarter 2024 earnings of $1.43 per share, which missed the Zacks Consensus Estimate of $1.44 by 0.7%. The company reported operating revenues of $2.28 billion, which missed the consensus estimate of $2.6 billion by 12.1%.

ONE Gas, Inc. OGS reported fourth-quarter 2024 operating earnings per share of $1.34, which beat the Zacks Consensus Estimate of $1.33 per share by 0.8%. The company recorded revenues of $630.7 million, which missed the Zacks Consensus Estimate of $661 million by 4.5%.

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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report

Sempra Energy (SRE) : Free Stock Analysis Report

WEC Energy Group, Inc. (WEC) : Free Stock Analysis Report

ONE Gas, Inc. (OGS) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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