Sempra Energy is a California-based utility company. It develops, operates, and invests in energy infrastructure and provides electric and gas services to its customers. Sempra Energy’s customer base is located mainly in the San Diego area as well as in Texas. The Texas market was opened up for Sempra through the recent acquisition of an 80% stake in Oncor. Utility stocks are generally considered to be defensive plays that work out well in times of volatility. Investors looking for regular dividend payouts also focus on utility stocks. The business model of utility companies is straightforward and the growth rates are also quite steady. Sempra Energy is one of the well-known utility companies that investors can look at.
Sempra Energy Announces Its 3Q2020 Earnings
In early November 2020, Sempra Energy announced its third-quarter 2020 earnings. Revenues were down from $2.75 billion to $2.64 billion. Earnings per share was also down from $2.84 per diluted share in the third quarter of 2019 to $1.21 per share in the third quarter of 2020. According to Sempra Energy CEO Jeffrey Martin, “Last quarter, we successfully concluded a two-year capital rotation program, where we divested non-core assets and repositioned our business and what we believe are the best markets in North America and we continue to see steady improvements in our financial results. Today, we are proud to be reporting strong earnings and reaffirming and guiding to the high end of our full-year 2020 adjusted EPS guidance range. Additionally, we are reaffirming our full year 2021 EPS guidance range.”
Sempra Energy’s stock closed at $123.33 on 3rd February 2021. The stock was almost flat on a 1-month basis and was trading at a 3.39% dividend yield. On a 5-year horizon, the stock has gained almost 30%. A much larger peer of Sempra in the utility industry is NextEra Energy. Its stock closed at $83.05 on 3rd February 2021. NextEra, at the time, was trading at a 1.69% dividend yield. over the preceding month and up 192% over a 5-year period.