Wall Street analysts foresee Sempra stock moving either upwards or downwards.
Sempra (SRE), an energy infrastructure company based in San Diego, California, reported its Q2 2025 results on Aug. 7, with adjusted EPS of $0.89, exceeding Wall Street's expectations of $0.83. Despite this positive surprise, SRE's shares only saw a 1.8% increase on the day.
The company, with a market cap of $52.9 billion, has been underperforming the broader market and the Utilities Select Sector SPDR Fund (XLU) over the past year. This underperformance is primarily due to a year-over-year decline in earnings despite higher revenues, which tempered investor enthusiasm.
Sempra's Q2 revenue stood at $3 billion, down marginally year over year. Although earnings matched the consensus of $0.85, they remained virtually flat compared to 2024's EPS of $0.89. Analysts had expected a 6.7% decline in EPS year-over-year, despite a revenue increase of about 4.7%.
The full-year 2025 adjusted EPS guidance range of $4.30 to $4.70 aligns with consensus estimates but does not represent a strong deviation to drive price outperformance relative to peers or the broader market. Although Sempra's utility subsidiaries secured a $600 million California transmission project, and LNG infrastructure expansion plans are progressing, these growth investments might still be viewed by investors as longer-term and not immediately impacting near-term earnings enough to lift the stock price substantially.
Among the 17 analysts covering SRE stock, the consensus is a "Moderate Buy." This consensus includes seven "Strong Buy" ratings, one "Moderate Buy," and nine "Holds." The Street-high price target of $87 suggests a 5.3% upside potential.
Two months ago, eight analysts suggested a "Strong Buy." On Aug. 4, Citigroup Inc. (C) analyst Ryan Levine kept a "Neutral" rating on SRE and raised the price target to $80.
For the current fiscal year, ending in December, analysts expect SRE's EPS to grow marginally to $4.68 on a diluted basis. For more information, please view the website's Disclosure Policy here.
On the date of publication, Neha Panjwani did not have positions in any of the securities mentioned in this article. It's important to note that all information and data in this article are solely for informational purposes.
Over the past year, Sempra (SRE) has gained 6.9%, while the broader S&P 500 Index (SPX) has rallied nearly 21.9%. In 2025, SRE stock is down 5.9%, compared to the SPX's 7.8% gains on a YTD basis.
Sempra (SRE) focuses on delivering sustainable energy and investing, developing, and operating transmission and distribution infrastructures. For more detailed analysis and updates, stay tuned to our platform.
- The underperformance of Sempra (SRE) in the market, despite a marginally decreased Q2 revenue of $3 billion and earnings that remained virtually flat compared to 2024, has led to a focus on its financial performance.
- Although Sempra's utility subsidiaries are securing projects like the $600 million California transmission project and LNG infrastructure expansion plans are progressing, investors' enthusiasm remains muted due to the company's financial performance and the lack of immediate impact on near-term earnings.
