Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

PG&E Corporation’s (PCG - Analyst Report) adjusted operating earnings per share of 79 cents in the second quarter of 2013 were ahead of the Zacks Consensus Estimate of 72 cents, backed by its gas-related commitments. However, the reported figure came in below the year-ago number of 81 cents by 2.5%.

On a reported basis, the company clocked earnings per share of 74 cents compared with earnings of 56 cents in the year-ago quarter.

Revenue Update

PG&E’s top line increased 5.1% to $3,776.0 million in the quarter from $3,593.0 million in the year-ago period and surpassed our expectation of $3,732.0 million. Electric revenue generated $3,059.0 million in the quarter (up 4.4% year over year), while Natural Gas clocked $717.0 million (up 8.3%).

Expenses

On the cost front, total operating expenses stood at $3,140.0 million in the quarter, up from the year-earlier level of $3,126.0 million.

Guidance

PG&E affirmed its full year 2013 operating earnings guidance range of $2.55–$2.75 per share.

Zacks Rank

The company retains a Zacks Rank #3 (Hold). In the near term, we would advise investors to focus on its Zacks Rank #1 (Strong Buy) peer Integrys Energy Group, Inc. (TEG - Analyst Report) and Zacks Rank #2 (Buy) peers IdaCorp, Inc. (IDA - Snapshot Report) and NiSource Inc. (NI - Analyst Report).

PG&E Corporation nevertheless has a solid portfolio of regulated utility assets that offer a stable earnings base and substantial long-term growth potential. The company strives to optimize generation margins by improving its cost structure, performance and reliability of its nuclear as well as fossil units.

Going forward, we expect the company’s earnings growth to be driven by favorable decisions from California Public Utilities Commission (CPUC) and Federal Energy Regulatory Commission, as well as long-term supply agreements, diversification into alternative power sources and infrastructure improvement programs resulting in rate base growth.

However, the present unfavorable macro backdrop, tepid demand for electricity, any accidental charges or severe fluctuation in prices keep us concerned.
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.28 +14.66%
ANI PHARMACE ANIP 24.64 +13.97%
E HOUSECHINA EJ 11.01 +9.44%
CANADIAN SOL CSIQ 26.90 +6.87%
KNIGHTSBRIDG VLCCF 12.47 +5.50%