San Diego, California-based Sempra (SRE) is an energy services company involved in the sale, distribution, storage and transportation of electricity and natural gas. With a market cap of $45.9 billion, Sempra operates through Sempra California, Sempra Texas Utilities, and Sempra Infrastructure segments.

The utility giant is expected to announce its Q1 results on Tuesday, May 6. Ahead of the event, analysts expect SRE to report an adjusted EPS of $1.25, down 6.7% from $1.34 reported in the year-ago quarter. Meanwhile, the company has missed the Street’s bottom-line estimates in each of the past four quarters.

For the full fiscal 2025, its earnings are expected to come in at $4.62 per share, marginally down from $4.65 per share reported in fiscal 2024. While in fiscal 2026, its earnings are expected to rebound 10.8% year-over-year to $5.12 per share.

SRE stock has observed a 1.7% uptick over the past 52 weeks, underperforming the Utilities Select Sector SPDR Fund’s (XLU) 18.1% surge and the S&P 500 Index’s ($SPX) 5.5% gains during the same time frame.

Sempra’s stock prices dropped by a staggering 19% after the release of its disappointing Q4 results on Feb. 25. While the company reported a 7.6% year-over-year growth in total revenues to approximately $3.8 billion, it significantly fell below the Street’s expectations of $4.9 billion. Moreover, the company’s adjusted EPS of $1.50 missed the consensus estimates by almost 8%. Furthermore, due to recent and planned regulatory matters and a higher-cost environment, Sempra reduced its fiscal 2025 EPS guidance range from $4.90 - $5.25 to $4.30 - $4.70 and gave a EPS guidance range of $4.80 to $5.30 for fiscal 2026, which missed analysts’ expectations and shattered investor confidence.

The consensus view on SRE is cautiously bullish, with a “Moderate Buy” rating overall. Of the 18 analysts covering the stock, opinions include eight “Strong Buys,” one “Moderate Buy,” and nine “Holds.” As of writing, the stock is trading 11.6% below its mean price target of $80.70.