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PG&E (PCG) to Report Q4 Earnings: What's in the Offing?

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PG&E Corporation (PCG - Free Report) is scheduled to report fourth-quarter 2021 results on Feb 10 before the opening bell.

In the last reported quarter, the company delivered a negative earnings surprise of 7.69%. The company boasts a four-quarter average negative earnings surprise of 5.48%.

Let's take a closer look at the factors that are likely to get reflected in PG&E Corporation’s upcoming results.

Factors to Note

During October and November, the company’s service territories witnessed above-normal precipitation, resulting in wet weather conditions. In November, its service territories experienced a warm weather pattern, while in December heavy rainfall was observed. Such weather patterns are likely to have boosted electricity demand among the company’s customers. This, in turn, might have favored the to-be-reported quarter's top line.

However, in October, an intense multiple atmospheric rivers event brought record rainfall to parts of central California, resulting in floods, landslides, downed trees and power outages throughout the region in Central California. This might have disrupted the smooth electricity flow for PCG customers, thereby contributing unfavorably to the company’s revenues in the to-be-reported quarter.

Thus, the overall impact of weather patterns is likely to have been mixed on the company’s fourth-quarter top line.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $5.14 billion, suggesting growth of 8.2% from the year-ago quarter.

However, restoration costs concerning the intense multiple atmospheric rivers event that caused power outages for a few PG&E customers might have hurt its overall quarterly earnings in the fourth quarter.

PG&E’s strong cost-reduction efforts, along with successful settlement agreements regarding the cost recovery for wildfire mitigation, may have offset the aforementioned impact. This is likely to get duly reflected in the to-be-reported quarter's results.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 28 cents per share, indicating an improvement of 33.3% 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 does not conclusively predict an earnings beat for PCG this time. 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. However, that is not the case here.

PG&E Corporation has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks to Consider

Here are three Utilities that you may want to consider as these have the right combination of elements to post an earnings beat this season:

Ameren Corporation (AEE - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ameren has a four-quarter average earnings surprise of 6.65%. The Zacks Consensus Estimate for Ameren’s fourth-quarter sales and earnings is pegged at $1.39 billion and 50 cents per share, respectively. AEE boasts a long-term earnings growth rate of 7.5%.

Dominion Energy (D - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #3. It boasts a long-term earnings growth rate of 6.6%.

The Zacks Consensus Estimate for Dominion Energy’s fourth-quarter sales and earnings is pegged at $3.85 billion and 90 cents per share, respectively. D has a four-quarter average earnings surprise of 2.39%.

DTE Energy (DTE - Free Report) has an Earnings ESP of +1.06% and a Zacks Rank #3.

DTE Energy boasts a long-term earnings growth rate of 6%. The Zacks Consensus Estimate for the company’s fourth-quarter sales and earnings is pegged at $3.18 billion and 94 cents per share, respectively. DTE has a four-quarter average earnings surprise of 9.05%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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