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PG&E (PCG) to Report Q2 Earnings: What's in the Offing?

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PG&E Corporation (PCG - Free Report) is scheduled to report second-quarter 2021 results on Jul 29, before market open.

In the last reported quarter, the company delivered a negative earnings surprise of 17.86%.

Moreover, the bottom line surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining two. The four-quarter earnings surprise is 8.04%, on average.

Let’s see how things have shaped up prior to this announcement.

Factors Under Consideration

During most part of the second quarter, commencing from May 2021, major parts of the company’s service territories experienced above-normal warm temperatures. This, in turn, is likely to have resulted in higher household expenditure on cooling for the company’s customers, and thus likely to have boosted PG&E Corp.’s top line in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $4.97 billion, indicating 9.7% growth from the year-ago quarter’s reported figure.

On the flip side, PG&E has been witnessing increasing wildfire-related costs alongside other financing expenses over the past few quarters. Keeping up with this trend, such increasing wildfire-related costs, cleanup and repair costs, bankruptcy and legal costs alongside other damages might have led the company to incur significant expenses, which are likely to have negatively impacted its bottom-line performance in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for PG&E’s first-quarter earnings is pegged at 29 cents per share, suggesting a 71.8% plunge from the year-ago quarter’s reported figure.

Pacific Gas & Electric Co. Price and EPS Surprise

Earnings Whispers

Our proven model predicts an earnings beat for PG&E this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.

Earnings ESP: PG&E has an Earnings ESP of +5.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are a few other players from the Utilities sector that have the right combination of elements to post an earnings beat this season.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +0.68% and a Zacks Rank #3.

Duke Energy (DUK - Free Report) has an Earnings ESP of +0.15% and carries a Zacks Rank #2.

Sempra Energy (SRE - Free Report) has an Earnings ESP of +1.08% and carries a Zacks Rank #3.