What changed
$SRE — Sempra provides energy infrastructure and utility services.
🎯 Q1 FY26 | Rev $4B | EPS $0.54 vs $1.69 🔴
💡 Consensus expected Q1 GAAP EPS of $1.69, but actual was $0.54 due to a large unrealized loss on derivative instruments (likely from commodity hedging). However, full-year adjusted EPS guidance of $4.80-$5.30 was reaffirmed, implying the Q1 miss is non-cash and non-recurring.
🏢 Business Quality: 7/10 | Valuation: fair
📉 Reward/Risk: {'upside_percent': 10, 'downside_percent': 15, 'ratio': 0.67, 'explanation': 'If the market realizes the Q1 miss is non-cash and guidance holds, SRE could re-rate to $100 (10% upside). If the derivative losses persist or guidance is cut, the stock could fall to $78 (15% downside). Risk/reward is unfavorable.'}
⚖️ SRE's Q1 miss is ugly but likely non-cash; wait for a pullback to $85-$88 or Q2 confirmation before buying.
Also in play: $PWR $MTZ $PRIM $EME $APG $CAT