Sempra Energy's Third Quarter Earnings Report

Sempra Energy (NYSE:SRE) announced its results for the most recent quarter on November 6, 2012. Sempra Energy is an energy services holding company. With its subsidiaries, the company provides electric, natural gas and other energy-rated products and services worldwide. It also focuses on developing energy infrastructure and operating utilities.

A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: Earnings: Quality Means Everything

The Numbers: Sempra Energy managed to exceed estimates with stronger-than-expected EPS and revenues. The company reported adjusted net income of $1.33 per share versus the $1 per share estimate and revenues of $2.51 billion versus the $2.33 billion estimate. Revenue fell 2.7% from the same period last year. Last quarter marks the third in a row in which the company has seen falling revenue on a year-over-year basis. The company's income has remained about on par with last year's levels.



Management Quote: "Our solid operating performance in the third quarter and through the first nine months keeps us on track to meet our 2012 earnings-per-share guidance of $4 to $4.30, excluding the impairment charges and assuming a final California Public Utilities Commission rate decision for our California utilities comes by year-end," said Debra L. Reed, chief executive officer of Sempra Energy.



Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.30 per share, down from $1.45 90 days ago. Increasing earnings estimate is a positive sign about the company and it typically leads a increase in the stock price. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is now $4.19 per share, down from $4.22 60 days ago.