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Why Is PG&E (PCG) Up 60.3% Since Last Earnings Report?

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It has been about a month since the last earnings report for PG&E (PCG - Free Report) . Shares have added about 60.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is PG&E due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

PG&E Corporation Q3 Earnings Beat, Revenues Up Y/Y

PG&E Corporation reported adjusted operating earnings per share of $1.11 in third-quarter 2019, which surpassed the Zacks Consensus Estimate of 99 cents by 12.1%. The bottom line, however, declined 1.8% from the year-ago quarter’s figure.
 
Including one-time items, the company incurred a GAAP loss of $3.06 per share against the earnings of $1.09 in the prior-year quarter.

Revenue Update
 
PG&E Corp’s total revenues of $4,432 million surpassed the Zacks Consensus Estimate of $4,392 million by 0.9%. The top line also improved 1.2% from the year-ago quarter.
 
While electric revenues improved 2.5% from the prior-year quarter’s figure, natural gas revenues declined 4% year over year.
 
Operational Highlights
 
Operating expenses in the reported quarter totaled $6,732 million, which surged 82.7% from $3,685 million in third-quarter 2018. The increase was due to elevated operating and maintenance expenses, higher wildfire-related claims, and escalated depreciation, amortization and decommissioning expenses.
 
The company incurred operating losses of $2,300 million against the operating income of $696 million in the previous year’s third quarter.
 
Interest expenses in third-quarter 2019 summed $52 million compared with $232 million in the year-ago period.

Guidance

PG&E Corp has not provided guidance for 2019 GAAP earnings and adjusted earnings from operations, due to the continuing uncertainty related to the 2018 Camp Fire, the 2017 Northern California wildfires, the Chapter 11 proceedings, and legislative and regulatory reforms.

How Have Estimates Been Moving Since Then?

Estimates revision followed a downward path over the past two months.

VGM Scores

At this time, PG&E has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

PG&E has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


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