- Sempra recently reported its second quarter 2025 earnings, showing revenue of US$3.00 billion and net income of US$472 million, and updated its full-year guidance with a new projected GAAP EPS range for 2025 and 2026.
- The company reaffirmed its long-term growth expectations, signaling management's continued confidence despite notable year-over-year declines in quarterly net income and earnings per share.
- We will explore how Sempra's reaffirmed long-term earnings guidance may influence its investment outlook and future growth narrative.
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Sempra Investment Narrative Recap
To be a shareholder in Sempra, you need to believe in the company's ability to achieve steady long-term growth through major infrastructure investments and stable utility operations, despite regulatory and market uncertainties. The recent earnings release, showing a year-over-year decline in net income and EPS, did not materially alter the view that the biggest short-term risk for Sempra remains pressure on near-term earnings, particularly given revised guidance and recent rate decisions in California. A reaffirmed long-term outlook continues to be a central catalyst, but nearer-term margin pressure is still the primary concern.
Among Sempra's recent announcements, the updated EPS guidance for 2025 and 2026 is most relevant to the current conversation. This guidance, which now projects a GAAP EPS range of US$4.05 to US$4.45 for 2025, sits below prior expectations and highlights some of the headwinds impacting Sempra’s earnings. Investors will likely continue focusing on how future capital investments and infrastructure projects may impact the company’s profitability outlook moving forward.
By contrast, investors should pay close attention to how changes in interest rates and capital requirements could affect the cost structure and earnings potential...
Read the full narrative on Sempra (it's free!)
Sempra's outlook anticipates $16.3 billion in revenue and $3.7 billion in earnings by 2028. This is based on a forecast 7.0% annual revenue growth rate and a $0.8 billion earnings increase from the current $2.9 billion level.
Uncover how Sempra's forecasts yield a $82.25 fair value, in line with its current price.
Exploring Other Perspectives
Retail investors in the Simply Wall St Community provided three fair value estimates for Sempra ranging from US$77.19 to US$90.27 per share. While Sempra’s long-term growth plan attracts attention, recent pressure on near-term earnings guidance has given investors a reason to reassess potential outcomes.
Explore 3 other fair value estimates on Sempra - why the stock might be worth 7% 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 3 key rewards 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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