Here's What Analysts Are Forecasting For Sempra (NYSE:SRE) After Its Yearly Results

Sempra (NYSE:SRE) just released its yearly report and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.9% to hit US$17b. Statutory earnings per share (EPS) came in at US$4.79, some 4.0% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sempra after the latest results.

See our latest analysis for Sempra

Taking into account the latest results, the current consensus, from the 14 analysts covering Sempra, is for revenues of US$15.9b in 2024. This implies a measurable 4.9% reduction in Sempra's revenue over the past 12 months. Statutory per-share earnings are expected to be US$4.80, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$16.1b and earnings per share (EPS) of US$4.80 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$82.35, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Sempra analyst has a price target of US$94.00 per share, while the most pessimistic values it at US$74.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sempra is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 4.9% annualised decline to the end of 2024. That is a notable change from historical growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.1% per year. It's pretty clear that Sempra's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sempra's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Sempra analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Sempra has 2 warning signs we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.