2024-05-07 12:27:43 ET
Summary
- Sempra's Q1 earnings were down 9% due to higher interest expense and tax payments, but the underlying results were more attractive.
- Sempra's California utility earnings were down due to higher interest expense, but a pending rate case decision is expected to support profit growth.
- Sempra's Texas utility saw earnings rise due to rate updates and rate base growth, and the company filed for a $3 billion cap-ex plan for its Texas utility.
- Sempra Infrastructure projects continue to progress, and long-term LNG demand can drive growth here.
Sempra ( SRE ) shares were trading roughly flat on Tuesday morning in response to a solid first quarter . Since I recommended shares as a buy at the end of December, Sempra has traded marginally lower even as the broader market has rallied 9%. Elevated interest rates have been an ongoing headwind for utility stocks as they make dividend yields less attractive, all else equal. While Sempra does have project risk, I view shares as attractive....
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Sempra: Solid Q1 With Texas Growth Poised To Accelerate