Sempra Stock Drops 20% After Profit Forecast Cut and Earnings Miss

The utility company lowered its 2025 earnings guidance, citing regulatory challenges and rising costs, while also unveiling a $56 billion capital plan for grid investments.

• Sempra's stock fell nearly 20%, marking the biggest decline in the S&P 500, after the company's fourth-quarter earnings and revenue missed Wall Street estimates.
• The company revised its 2025 earnings per share (EPS) guidance to $4.30-$4.70, down from $4.90-$5.25, citing regulatory issues and a higher-cost environment.
• Sempra announced a record $56 billion capital investment plan for 2025-2029, with over 90% allocated to regulated utility projects in Texas and California.
• Fourth-quarter adjusted EPS rose to $1.50 from $1.13 year-over-year but fell short of analysts' expectations of $1.60, while revenue of $3.76 billion also underperformed forecasts.
• The company declared a quarterly dividend increase to $0.645 per share, raising the annualized dividend to $2.58, payable in April 2025.

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Investopedia Benzinga