Boston, MA 04/30/2014 (wallstreetpr) – Profit in the upcoming reporting is expected to fall. However, analysts remain optimistic about the prospects of Sempra Energy (NYSE:SRE). The fear that profit could dip in the looming quarter is linked to the manner analysts have adjusted their earnings estimates on the stock.
While analysts expect positive earnings in the looming reporting, consensus earnings estimates on the company reduced over the past three months, signaling some short-term barriers to profit growth. Nonetheless, the company should be able to overcome the barriers and achieve profit growth.
Q12014 results
Sempra Energy (NYSE:SRE) reports its Q12014 financial results Friday, May 2. The release of the earnings will be followed by a conference call with investors and analysts several hours later. The call should see the management discussing the performance, possible challenges, opportunities and the way forward. It is likely that a dip in profit might lead to renewed efforts in expenses reduction and revenue growth to stabilize the company’s performance.
In the past three or so quarters, investors have only known good news from Sempra Energy (NYSE:SRE). The company reported almost 57 percent growth in profit in Q42013. That was preceded by 11 percent growth in profit in Q32013. And Q22013 witnessed threefold growth in profit. Because of the good track record in profit posting, investors are likely to pardon the management in case the latest quarter fails to come strongly as expected. Nonetheless, shareholders are likely to press for more value creation through revenue growth and expenses lowering.
The reporting ahead
On the average, Wall Street expects 94 cents in earnings per share Q12014. Three months ago the consensus estimate was 99 cents per share. Revenue in the quarter is projected to come at $275 billion, up 4 percent from a year earlier. The past two consecutive quarters came on revenue growth of about two percent in each case.
As for the full-year 2014, Wall Street expects the company to reported $4.45 in earnings per share and $10.80 billion in revenue.
A majority of analysts tracking the stock recommend “buy” at 80 percent. That is better than 41 percent “buy” recommendation for eight similar companies.
