How Investors Are Reacting To Sempra (SRE) Raising 2025 Earnings Guidance and Reaffirming Growth Targets

• Sempra recently updated its 2025 earnings guidance, projecting GAAP EPS of $3.29 to $3.69, and reaffirmed its long-term EPS growth expectations of 7% to 9% through 2029 during a Value Creation Update call and participation at the Wolfe Research Utilities, Midstream & Clean Energy Conference in New York.
• The company's confirmation of growth guidance signals management's confidence in both near-term performance and its multi-year investment strategy driven by infrastructure and energy transition trends.
• We’ll examine how Sempra’s raised 2025 earnings guidance and long-term growth targets may reshape its investment outlook going forward.

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Sempra Investment Narrative Recap

Owning shares in Sempra often comes down to believing in the long-term need for energy infrastructure, particularly in fast-growing regions like Texas and California. The company's recently updated 2025 earnings guidance, which affirms strong growth targets and signals management's confidence, does not materially change Sempra’s biggest near-term catalyst: the acceleration of regulated capital recovery in Texas. However, exposure to regulatory shifts and policy risks in its key markets remains the biggest risk for the business.

The most relevant recent announcement is Sempra’s confirmation of its 2025 GAAP EPS range of $3.29 to $3.69, and the reaffirmation of 7% to 9% annual EPS growth targets through 2029. This signals to investors that the company’s management still sees a stable path for growth, which is closely tied to ongoing investments and legislative support in its core utility operations.

By contrast, investors should also be aware that major regulatory or policy changes in California or Texas could ...

Read the full narrative on Sempra (it's free!)

Sempra's narrative projects $16.6 billion revenue and $3.8 billion earnings by 2028. This requires 7.6% yearly revenue growth and a $1.1 billion earnings increase from $2.7 billion today.

Uncover how Sempra's forecasts yield a $85.64 fair value, a 6% downside to its current price.

Exploring Other Perspectives

Simply Wall St Community members provided three unique fair value estimates for Sempra, ranging from US$77.42 to US$90.27 per share. While these views vary, continued reliance on stable regulatory frameworks across core regions remains key for long-term performance, encouraging you to explore opinions from different market participants.

Explore 3 other fair value estimates on Sempra - why the stock might be worth 15% less than the current price!

Build Your Own Sempra Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Sempra research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Sempra research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Sempra's overall financial health at a glance.

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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.

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