PG&E Corporation's (PCG) Q3 Earnings Miss, Revenues Up Y/Y

Zacks Equity Research
·3-min read

PG&E Corporation PCG reported adjusted operating earnings per share of 22 cents in third-quarter 2020, which missed the Zacks Consensus Estimate of 25 cents by 12%. The bottom line, however, declined from the year-ago quarter’s reported figure of $1.11.

Including one-time items, the company reported GAAP earnings of 4 cents per share against the loss of $3.06 in the prior-year quarter.

Revenue Update

PG&E Corp’s total revenues of $4,882 million surpassed the Zacks Consensus Estimate of $4,812 million by 1.5%. Also, the top line increased 10.2% from the year-ago quarter’s $4,432 million.

While electric revenues increased 7.2% from the prior-year quarter’s reported figure, natural gas revenues improved 22.1% year over year.

Pacific Gas Electric Co. Price, Consensus and EPS Surprise

Pacific Gas  Electric Co. Price, Consensus and EPS Surprise
Pacific Gas Electric Co. Price, Consensus and EPS Surprise

Pacific Gas Electric Co. price-consensus-eps-surprise-chart | Pacific Gas Electric Co. Quote

Operational Highlights

Operating expenses in the reported quarter totaled $4,484 million, which declined 33.4% from $6,732 million in third-quarter 2019. The decline was due to lower wildfire-related claims.

The company reported an operating income of $398 million against the operating losses of $2,300 million incurred during the previous year’s third quarter.

Interest expenses in third-quarter 2020 summed $391 million compared with $52 million in the year-ago period.

2020 Guidance

PG&E Corporation issued 2020 guidance for consolidated GAAP losses of $1.00-$1.06 per share, which includes non-core items.

On a non-GAAP basis, the guidance range for 2020 core earnings was reaffirmed at $1.60-$1.63 per share. The Zacks Consensus Estimate for the company’s 2020 earnings, pegged at $1.50 per share, lies below the company’s guided range.

Zacks Rank

PG&E Corp. currently carries a Zacks Rank #4 (Sell).

Recent Utility Releases

American Electric Power AEP, a Zacks Rank #3 (Hold) company, reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

NextEra Energy NEE, a Zacks Rank #3 company, reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.

Entergy Corporation ETR, a Zacks Rank #3 company, reported third-quarter 2020 adjusted earnings of $2.44 per share, which surpassed the Zacks Consensus Estimate of $2.42 by 0.8%.

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