Sempra Energy Set to Report Q2 Earnings: What's in the Offing?

Sempra Energy SRE is scheduled to release its second-quarter 2025 results on Aug. 7, before market open. 

The company delivered an earnings surprise of 19.01% in the last reported quarter. However, SRE has a negative four-quarter average earnings surprise of 2.07%.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play Ahead of SRE’s Q2 Results

The majority of SRE’s service territories experienced warmer-than-normal temperature patterns during the second quarter. This is likely to have boosted electricity demand from its customers for cooling purposes this spring, which must have bolstered the company’s top-line performance.

However, adverse weather events, including heavy rainfall and thunderstorms that hit Sempra Energy’s service areas, are likely to have caused outages for some of its customers, hurting the company’s revenues to some extent.

Nevertheless, the strong rate-based growth witnessed in the previous quarters, increasing infrastructure investments and customer growth must have boosted the company’s overall top-line performance.

From a cost perspective, the aforementioned adverse weather events might have caused infrastructural damage to Sempra Energy, increasing the company’s operating costs to repair the damage. This, along with higher interest expenses, is likely to have negatively impacted the company’s bottom-line performance. 

However, solid sales expectations, increased consumption in Texas, higher income tax benefits in California, favorable returns from previous investments, along with the implementation of new interim rates, might have aided SRE’s earnings to some extent.

Q2 Expectations for Sempra Energy

The Zacks Consensus Estimate for SRE’s sales is pegged at $3.15 billion, which indicates year-over-year growth of 4.7%.

The Zacks Consensus Estimate for earnings stands at 83 cents per share, which suggests a year-over-year decline of 6.7%.

What Our Model Predicts for SRE

Our proven model predicts an earnings beat for Sempra Energy this time. 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 the case here, as you will see below.

Earnings ESP: SRE has an Earnings ESP of +0.60%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Sempra Energy carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are three other companies from the same sector that also have the right combination of elements to post an earnings beat this reporting cycle:

Southwest Gas SWX is scheduled to report its second-quarter 2025 results on Aug. 6, before market open. It has an Earnings ESP of +8.00% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for sales is pegged at $1.21 billion, which calls for a 2.2% improvement from the year-ago quarter’s figure. The consensus estimate for earnings stands at 42 cents per share.

MDU Resources MDU is set to release its second-quarter 2025 results on Aug. 7, before market open. It has an Earnings ESP of +20.00% and a Zacks Rank of 2 at present.

MDU’s (three to five years) earnings growth rate is 7%. The consensus estimate for earnings stands at 13 cents per share.

BCE Inc. BCE is set to report second-quarter earnings on Aug. 7, before market open. It has an Earnings ESP of +0.97% and a Zacks Rank of 2 at present. 

The Zacks Consensus Estimate for sales is pegged at $4.32 billion. The consensus estimate for earnings stands at 52 cents per share.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research