Sempra Stock Plummets Amid Disappointing Earnings and Profit Outlook
Sempra shares sharply declined following weaker-than-expected Q4 results and a lowered profit forecast for 2025, marking the largest drop in the S&P 500.
Essential Highlights
- Sempra's shares dropped nearly 20% after missing Q4 earnings expectations.
- The energy firm revised its 2025 earnings forecast downward due to regulatory challenges and rising costs.
- Sempra was the top decliner within the S&P 500 on Tuesday.
Energy giant Sempra (SRE) experienced a significant stock decline on Tuesday afternoon, following its fourth-quarter financial results and profit guidance that fell short of analyst predictions.
The company reported adjusted earnings per share (EPS) of $1.50 on revenue of $3.76 billion, both showing year-over-year growth but below the estimates gathered by Visible Alpha.
Sempra Adjusts EPS Forecast Citing Regulatory and Cost Pressures
Due to ongoing and anticipated regulatory issues alongside a higher cost environment, Sempra lowered its 2025 EPS guidance to a range of $4.30 to $4.70, down from the previous $4.90 to $5.25. The 2026 EPS forecast was also reduced to between $4.80 and $5.30, falling short of market expectations.
CEO Jeffrey Martin emphasized, "By resetting our 2025 guidance, we are establishing a solid foundation for a transformative decade of growth."
Following the announcement, Sempra shares fell nearly 19% to $70.57, reaching their lowest price since April of last year. After hitting an all-time high in November, the stock now trades below its value from a year ago.
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