San Diego-based Sempra (NYSE:SRE) reported a significant rise in its third-quarter net income to $721 million, up from $485 million in the same period last year. This robust performance outpaced market expectations, despite the company's revenues of $3.33 billion falling short of the FactSet consensus.
The company also saw substantial growth in its earnings per share (EPS), which increased to $1.14 from 77 cents, and adjusted EPS, which rose to $1.08 from 98 cents. The adjusted earnings also displayed a boost, moving from $622 million to $685 million.
The rise in profit has been attributed to cost reductions across the board. The company's natural gas expenses fell to $260 million and electric fuel and purchased power costs declined to $183 million.
Following the strong performance in the first three quarters of 2023, Sempra has revised its GAAP EPS guidance for the full year. The company now forecasts to at least meet, if not exceed, the adjusted EPS prediction.
InvestingPro Insights
Sempra's financial stability and consistent growth are further highlighted in real-time data from InvestingPro. The company's market capitalization stands at a robust $45.42 billion, with a P/E ratio of 18.27, indicating a reasonable valuation relative to its earnings. Over the last twelve months as of Q2 2023, Sempra achieved a revenue growth of 19.28%, despite a quarterly decline of -5.98% in Q2 2023.
InvestingPro Tips offer additional insights into Sempra's performance. The company has a strong track record of raising its dividend for 12 consecutive years, a testament to its commitment to rewarding shareholders. Analysts are also optimistic about the company's future, with six analysts having revised their earnings upwards for the upcoming period.
For those considering investing in Sempra, InvestingPro offers numerous additional tips and metrics, providing a comprehensive overview of the company's financial health and prospects.
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