Sempra Energy, a big company that provides energy, reported its earnings (money it makes) for the second quarter of 2024. They didn't make as much money as people expected and less than they made in the same period last year. The company also said its revenues (money it gets from selling things) went down compared to last year. The CEO of the company talked about what they think will happen in the future with their earnings and they think they will make more money this year and next year. Read from source...

Sempra Energy (SRE) reported second-quarter 2024 adjusted earnings per share of 89 cents, which missed the Zacks Consensus Estimate of 92 cents by 3.3%. The figure also declined 5.3% from earnings of 94 cents per share in the prior-year quarter.

The reported earnings missed the Zacks Consensus Estimate by a significant margin, which is a strong indicator of a negative surprise. The analysts who cover the company had a consensus estimate of 92 cents per share, but the actual earnings came in at 89 cents per share. This means that the company's actual earnings were 3 cents per share lower than what the analysts had expected.

The decline in earnings from the prior-year quarter is also a negative sign for the company. It shows that the company's profitability has been declining over time, which could be a cause for concern for investors.

Additionally, the company's total revenues of $3.01 billion declined 9.79% from $3.34 billion in the year-ago quarter. This was due to lower revenue contributions from the Natural gas and Energy-related business units. The top line also missed the Zacks Consensus Estimate of $3.52 billion by 14.5%.

The decline in revenues and the miss of the Zacks Consensus Estimate by a significant margin are both negative indicators for the company's financial performance. The company's inability to generate expected revenues and profits could be a cause for concern for investors and analysts alike.

The company's cash and cash equivalents decreased from $236 million as of Dec 31, 2023, to $228 million as of Jun 30, 2024. This is a decline of $8 million in cash and cash equivalents over the past six months. The company's long-term debt and finance leases also increased from $27.76 billion as of Dec 31, 2023, to $28.97 billion as of Jun 30, 2024. This is an increase of $1.21 billion in long-term debt and finance leases over the past six months.

The company's decrease in cash and cash equivalents and increase in long-term debt and finance leases are both negative signs for the company's financial health. The company's financial situation could be becoming more precarious, which could be a cause for

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Article's Main Strategic Recommendation: None