Key Points
Sempra expects $1.48 EPS and $4.10B revenue on May 7, 2026.
Historical pattern shows consistent EPS beats but revenue misses of 3-8%.
B+ Meyka AI grade reflects stable utility operations with solid analyst support.
Elevated PE ratio and negative free cash flow warrant careful valuation analysis.
Sempra (SRE) reports earnings on May 7, 2026, with analysts expecting $1.48 earnings per share and $4.10 billion in revenue. The diversified utility company serves millions across California and Texas through its San Diego Gas & Electric, Southern California Gas, and Sempra Texas Utilities segments. With a market cap of $61.64 billion and trading at $94.37, investors are watching closely to see if SRE can maintain momentum. The company’s recent earnings history shows mixed results, with some beats and misses. Understanding what analysts expect and how Sempra has performed recently will help investors prepare for this important earnings announcement.
What Analysts Expect from Sempra Earnings
Analysts have set clear expectations for Sempra’s upcoming earnings report. The consensus EPS estimate stands at $1.48 per share, while revenue is projected at $4.10 billion. These figures represent what Wall Street believes the company will deliver based on current operations and market conditions.
EPS Estimate Analysis
The $1.48 EPS estimate reflects analyst expectations for profitability. Comparing this to recent quarters shows variability in performance. In the most recent quarter (February 2026), Sempra reported $1.28 EPS against a $1.24 estimate, beating expectations by $0.04. However, the August 2025 quarter saw $0.89 EPS versus a $0.846 estimate, a smaller beat. This pattern suggests Sempra has been meeting or slightly exceeding EPS expectations, though results vary by quarter.
Revenue Projection Details
The $4.10 billion revenue estimate represents steady performance from Sempra’s three main operating segments. The company’s diversified utility portfolio across California and Texas provides stable revenue streams. Recent quarters show revenue ranging from $3.0 billion to $3.8 billion, making the $4.10 billion estimate a meaningful target. This projection reflects expected seasonal demand and operational growth across the company’s service territories.
Historical Earnings Performance and Beat/Miss Pattern
Sempra’s recent earnings history reveals a consistent pattern of meeting or slightly exceeding analyst expectations. Understanding this track record helps predict whether the company will beat or miss the current estimates.
Recent Quarter Results
In February 2026, Sempra delivered $1.28 EPS against a $1.24 estimate, beating by 3.2%. Revenue came in at $3.72 billion versus a $4.05 billion estimate, missing by 8.3%. The August 2025 quarter showed $0.89 EPS versus $0.846 estimate, beating by 5.2%, while revenue hit $3.0 billion against a $3.10 billion estimate, missing by 3.2%. The May 2025 quarter delivered $1.44 EPS against $1.32 estimate, beating by 9.1%, with revenue at $3.80 billion versus $3.92 billion estimate, missing by 3.1%.
Beat/Miss Prediction
Based on this pattern, Sempra shows a strong track record of beating EPS estimates while consistently missing revenue targets by 3-8%. For the May 7 earnings, investors should expect the company to likely beat the $1.48 EPS estimate but potentially miss the $4.10 billion revenue target. This pattern suggests management executes well on profitability while facing revenue headwinds or conservative analyst projections.
Key Metrics and What to Watch
Several important metrics will determine how investors react to Sempra’s earnings announcement. These factors go beyond simple EPS and revenue numbers.
Dividend and Cash Flow Performance
Sempra maintains a strong dividend yield of 2.73%, paying $2.59 per share annually. The payout ratio stands at 89.4%, indicating the company prioritizes shareholder returns. Operating cash flow per share reached $6.99, though free cash flow turned negative at negative $9.26 per share. Investors should monitor whether the company can improve free cash flow while maintaining its generous dividend. This balance is critical for long-term sustainability and stock performance.
Debt and Financial Health
The company carries a debt-to-equity ratio of 1.15 and net debt-to-EBITDA of 5.96. These metrics indicate moderate leverage typical for regulated utilities. Interest coverage stands at 2.24x, suggesting adequate ability to service debt. Investors should watch for any commentary on capital expenditure plans, regulatory developments, or refinancing activities that could impact financial flexibility.
Operational Efficiency
Gross profit margin sits at 29.3%, while operating margin is 23.9%. The company’s return on equity of 5.8% reflects typical utility sector performance. Management commentary on operational efficiency, customer growth, and rate recovery will be important indicators of future earnings quality and sustainability.
Meyka AI Grade and Investment Context
Sempra receives a Meyka AI grade of B+, reflecting solid fundamental performance relative to market benchmarks and sector peers. This grade factors in S&P 500 benchmark comparison, sector performance, financial growth, key metrics, and analyst consensus. The grade is not guaranteed and we are not financial advisors.
What the B+ Grade Means
The B+ rating suggests Sempra is a reasonably attractive investment within the utilities sector. The company demonstrates stable operations, consistent dividend payments, and moderate growth prospects. However, the grade also reflects some concerns about valuation and financial metrics. The PE ratio of 34.31 appears elevated for a utility, suggesting the market prices in future growth or quality premium. Investors should consider whether current valuations align with their risk tolerance and return expectations.
Analyst Consensus and Outlook
With 20 buy ratings, 4 hold ratings, and no sell ratings, analyst consensus leans positive on Sempra. The consensus rating of 3.0 (on a scale where 1 is strong buy and 5 is strong sell) indicates moderate bullish sentiment. However, the lack of price targets in current data limits visibility on upside potential. Investors should monitor analyst commentary following earnings for any changes to ratings or price targets based on management guidance and operational updates.
Final Thoughts
Sempra’s May 7 earnings report will likely show an EPS beat but potential revenue miss based on historical trends. The company offers stable utility characteristics with strong dividend yield and solid analyst support, but elevated valuation and moderate leverage require monitoring. Investors should focus on free cash flow trends, dividend sustainability, and management guidance on capital spending and regulatory developments.
FAQs
What is the consensus EPS estimate for Sempra’s May 7 earnings?
Analysts expect $1.48 EPS. Sempra has consistently beaten estimates by 3-9% in recent quarters, suggesting a likely beat on this target.
How has Sempra performed against revenue estimates recently?
Sempra missed revenue estimates in three of the last four quarters by 3-8%. The $4.10 billion estimate may face similar headwinds, though profitability metrics consistently beat.
What does Sempra’s B+ Meyka AI grade indicate?
The B+ grade reflects solid fundamentals and stable operations. However, elevated PE ratio and moderate leverage warrant careful valuation evaluation before investing.
Is Sempra’s dividend safe given current cash flow trends?
The 2.73% yield appears sustainable with an 89.4% payout ratio. Negative free cash flow requires monitoring; management guidance on capital spending will clarify long-term sustainability.
What should investors watch during the earnings call?
Monitor free cash flow trends, capital expenditure guidance, regulatory developments, customer growth, and management commentary on rate recovery to assess earnings quality and dividend sustainability.
Disclaimer:
Stock markets involve risks. This content is for informational purposes only. Earnings estimates are analyst projections and not guarantees of actual results. Past performance does not guarantee future results. Meyka AI PTY LTD provides market analysis and data insights, not financial advice. Always conduct your own research and consider consulting a licensed financial advisor.
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