PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 94 cents in the third quarter of 2016 lagged the Zacks Consensus Estimate of $1.10 per share by 14.5%.
Earnings were, however, up 11.9% from 84 cents reported in the year-ago quarter. The rise in earnings was due to some additional authorized revenues collected through rates as a result of the final phase one decision in the Pacific Gas and Electric Company’s 2015 Gas Transmission and Storage (GT&S) rate case and higher rate base earnings. This was partially offset by certain timing-related tax expenses.
GAAP earnings during the quarter were 77 cents per share, compared with 63 cents per share a year ago. The difference between operating and GAAP earnings in the reported quarter was due to pipeline-related expenses of 4 cents, legal and regulatory expenses of 3cents, fines and penalties of 8 cents and insurance costs of 2 cents.
PG&E’s total revenue of $4,810 million in the quarter missed the Zacks Consensus Estimate of $4,954 million by 2.9%. Revenues improved 5.7% from the year-ago period.
Electric revenues were up 3.3% year over year, and natural gas revenues improved19.6%.
PG&E CORP Price, Consensus and EPS Surprise
Total operating expenses in the third quarter were $4,170 million, up 4.1% from $4,005 million in the year-ago period. Costs increased due to higher operation and maintenance expenses.
Operating income came in at $640 million, up from $545 million in the third quarter 2015.
Interest expenses in the reported quarter were $211 million, compared with $194 million in the year-ago quarter.
The companyhas reiterated its guidance for 2016 adjusted earnings from operations in the range of $3.65−$3.85 per share.
Capital expenditure is envisioned to be $5.7 billion for 2016.
CMS Energy Corp. (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%.
DTE Energy Co. (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%.
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2016 operating earnings of $1.30 per share, beating the Zacks Consensus Estimate of $1.21 by 7.4%.
PG&E Corporationhas a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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