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PG&E (PCG) to Report Q3 Earnings: What's in the Offing?

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PG&E Corporation (PCG - Free Report) is scheduled to report third-quarter 2021 results on Nov 1, before the opening bell.

In the last reported quarter, the company delivered a negative earnings surprise of 6.90%. PG&E has a trailing four-quarter negative earnings surprise of 6.56%, on average.

Factors to Note

During most part of the third quarter, the company’s service territories witnessed warmer than normal temperatures. This is likely to have boosted electricity demand for cooling purposes among the company’s customers. This, in turn, might have favored the to-be-reported quarter's top-line performance.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $5.23 billion, suggesting growth of 7.2% from the year-ago quarter.

However, extreme drought condition in several of its serviced territories resulted in increased wildfire activity across California by the end of the third quarter. This may have pushed up the company’s wildfire-related costs. This,in turn,is likely to have weighed on the third quarter performance. Nevertheless, solid sales performance and strong cost-reduction efforts of the company may have offset the aforementioned impact. This is likely to get reflected in the to-be-reported quarter's results.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 27 cents per share, indicating an improvement of 22.7% from the prior-year reported figure.

Pacific Gas & Electric Co. Price and EPS Surprise

Pacific Gas & Electric Co. Price and EPS Surprise

Pacific Gas & Electric Co. price-eps-surprise | Pacific Gas & Electric Co. Quote

 

What the Zacks Model Unveils

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. This is the case here as you will see.

Earnings ESP: The company’s Earnings ESP is +5.66%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PG&E currently 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 three other Utilities players you may want to consider, as these too have the right combination of elements to post an earnings beat this season:

AES Corporation(AES - Free Report) has an Earnings ESP of +3.53% and a Zacks Rank #3.

Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank #3.

Edison International (EIX - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #3.

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