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PG&E (PCG) to Report Q3 Earnings: Here's What to Expect
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PG&E Corporation (PCG - Free Report) is scheduled to report third-quarter 2023 results on Oct 26, before the opening bell.
In the last reported quarter, the company reported a negative earnings surprise of 14.81%. The company has a four-quarter average negative earnings surprise of 0.28%.
Let’s take a closer look at the factors that are likely to be reflected in PG&E’s upcoming quarterly results.
Factors to Note
During most of the third quarter, PCG’s service territories observed a mixed weather pattern. While some parts of the July-September 2023 period witnessed an above-average temperature, a below-normal temperature, accompanied with precipitation, prevailed in other parts. Such a weather pattern is likely to have had a moderate impact on the company’s overall revenues in the soon-to-reported quarter.
Moreover, favorable rate cases provide a positive outlook for PCG’s third-quarter revenue performance.
The Zacks Consensus Estimate for revenues is pegged at $5.95 billion, indicating growth of 10.2% from the year-ago quarter’s level.
Tropical storms, including hurricane Hilary, hit the service areas of PG&E. This might have increased the company’s operating & maintenance (O&M) costs, thereby hurting its third-quarter earnings.
Nevertheless, solid sales growth and PCG’s efforts to reduce its non-fuel O&M expenses are likely to have boosted its overall bottom-line performance.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 33 cents per share, implying year-over-year growth of 13.8%.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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, which is not the case here.
Earnings ESP: The company’s Earnings ESP is -29.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are three Utility players that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle.
Entergy (ETR - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 3.41%.
Entergy boasts a long-term earnings growth rate of 5.8%. The Zacks Consensus Estimate for ETR’s third-quarter earnings and sales is pegged at $2.99 per share and $4.05 billion, respectively.
NiSource (NI - Free Report) has an Earnings ESP of +18.52% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter earnings is pegged at 14 cents per share, implying a 40% increase from that reported in the prior-year quarter.
The consensus mark for NI’s sales is pinned at $1.06 billion. The company has a four-quarter average negative earnings surprise of 5.61%.
Sempra Energy (SRE - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #2 at present. The consensus estimate for third-quarter earnings is pinned at $1 per share, indicating a 1% increase year over year.
Sempra Energy boasts a four-quarter average earnings surprise of 9.81%. The consensus mark for SRE’s third-quarter sales is pegged at $3.82 billion, indicating growth of 5.6% from that recorded in the prior-year quarter.
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PG&E (PCG) to Report Q3 Earnings: Here's What to Expect
PG&E Corporation (PCG - Free Report) is scheduled to report third-quarter 2023 results on Oct 26, before the opening bell.
In the last reported quarter, the company reported a negative earnings surprise of 14.81%. The company has a four-quarter average negative earnings surprise of 0.28%.
Let’s take a closer look at the factors that are likely to be reflected in PG&E’s upcoming quarterly results.
Factors to Note
During most of the third quarter, PCG’s service territories observed a mixed weather pattern. While some parts of the July-September 2023 period witnessed an above-average temperature, a below-normal temperature, accompanied with precipitation, prevailed in other parts. Such a weather pattern is likely to have had a moderate impact on the company’s overall revenues in the soon-to-reported quarter.
Pacific Gas & Electric Co. Price and EPS Surprise
Pacific Gas & Electric Co. price-eps-surprise | Pacific Gas & Electric Co. Quote
Moreover, favorable rate cases provide a positive outlook for PCG’s third-quarter revenue performance.
The Zacks Consensus Estimate for revenues is pegged at $5.95 billion, indicating growth of 10.2% from the year-ago quarter’s level.
Tropical storms, including hurricane Hilary, hit the service areas of PG&E. This might have increased the company’s operating & maintenance (O&M) costs, thereby hurting its third-quarter earnings.
Nevertheless, solid sales growth and PCG’s efforts to reduce its non-fuel O&M expenses are likely to have boosted its overall bottom-line performance.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 33 cents per share, implying year-over-year growth of 13.8%.
What the Zacks Model Unveils
Our proven model does not conclusively predict 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, which is not the case here.
Earnings ESP: The company’s Earnings ESP is -29.59%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PCG currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three Utility players that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle.
Entergy (ETR - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 3.41%.
Entergy boasts a long-term earnings growth rate of 5.8%. The Zacks Consensus Estimate for ETR’s third-quarter earnings and sales is pegged at $2.99 per share and $4.05 billion, respectively.
NiSource (NI - Free Report) has an Earnings ESP of +18.52% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter earnings is pegged at 14 cents per share, implying a 40% increase from that reported in the prior-year quarter.
The consensus mark for NI’s sales is pinned at $1.06 billion. The company has a four-quarter average negative earnings surprise of 5.61%.
Sempra Energy (SRE - Free Report) has an Earnings ESP of +1.84% and a Zacks Rank #2 at present. The consensus estimate for third-quarter earnings is pinned at $1 per share, indicating a 1% increase year over year.
Sempra Energy boasts a four-quarter average earnings surprise of 9.81%. The consensus mark for SRE’s third-quarter sales is pegged at $3.82 billion, indicating growth of 5.6% from that recorded in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.