PG&E Corporation (PCG) Q1 Earnings Beat, Revenues Down Y/Y

Zacks Equity Research Published on May 02, 2019

PG&E Corporation (PCG - Free Report) reported adjusted operating earnings per share of $1.04 in first-quarter 2019, which surpassed the Zacks Consensus Estimate of 90 cents by 15.6%. The bottom line also increased 14.3% from the year-ago quarter’s figure.

The increase in quarter-over-quarter non-GAAP earnings from operations was primarily driven by growth in rate base earnings, timing of insurance premiums and timing of taxes.

Including one-time items, the company reported GAAP earnings of 25 cents per share compared to 86 cents in the prior-year quarter.

Revenue Update

PG&E Corp’s total revenues of $4,011 million missed the Zacks Consensus Estimate of $4,190 million by 4.2%. The top line also declined 1.1% from the year-ago quarter.

While electric revenues decreased 5.4% from the prior-year quarter’s figure, natural gas revenues improved 10.3% year over year.

Operational Highlights

Operating expenses in the reported quarter totaled $3,822 million, up 10.6% from $3,457 million in first-quarter 2018. Costs increased due to higher cost of natural gas, increased operating and maintenance expenses along with escalated depreciation, amortization and decommissioning expenses.

The company generated operating income of $189 million compared to operating income of $599 million in the previous year’s first quarter.

Interest expenses in first-quarter 2019 summed $103 million compared with $220 million in the year-ago period.

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

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 and the 2017 Northern California wildfires, and the Chapter 11 proceedings, and legislative and regulatory reforms.

Zacks Rank

PG&E Corp currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

FirstEnergy Corporation (FE - Free Report) , which carries a Zacks Rank #3, delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.

NextEra Energy, Inc. (NEE - Free Report) , which carries a Zacks Rank #2 (Buy), reported first-quarter 2019 adjusted earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.01 by 9.4%.

DTE Energy Company (DTE - Free Report) , which carries a Zacks Rank #2, reported first-quarter 2019 operating earnings per share (EPS) of $2.05, which exceeded the Zacks Consensus Estimate of $1.95 by 5.1%.

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