Back to top

Realtime BLOG

Zacks Equity Research

PG&E Corp (PCG) Up 4.2% Since Earnings Report: Can It Continue?

PCG

Trades from $3

It has been about a month since the last earnings report for Pacific Gas & Electric Co. (PCG - Free Report) . Shares have added about 4.2% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

PG&E Corp. Beats on Q4 Earnings, Expenses Increase Y/Y

PG&E Corp.’s adjusted operating earnings per share (EPS) of $1.33 in the fourth quarter of 2016 surpassed the Zacks Consensus Estimate of $1.29 by 3.1%. Earnings were also up 166% from 50 cents reported in the year-ago quarter.

GAAP earnings during the quarter were $1.36 per share, compared with $0.27 a year ago.

During full-year 2016, the company’s adjusted operating EPS came in at $3.76, which beat the Zacks Consensus Estimate of $3.72 by 1.1%.

Revenue Update

During 2016, the company reported revenues of $17.67 billion, up 4.95% from $16.83 billion in 2015. The full-year revenue figure however missed the Zacks Consensus Estimate of $17.89 billion by 1.2%.

Electric revenues were up 1.5% from the 2015 levels while natural gas revenues rose 19.7%.

Operational Highlights

Total operating expenses in 2016 were $15.49 billion, up 1.1% from $15.33 billion in 2015. Costs increased due to higher operation and maintenance expenses as well as depreciation, amortization and decommissioning costs.

Operating income came in at $2.17 billion, up from $1.51 billion in 2015.

Interest expenses in 2016 were $829 million, compared with $773 million in the year-ago quarter.

Guidance

The company has reiterated its guidance for 2017 adjusted earnings from operations at the range of $3.55−$3.75 per share.

PG&E Corp. expects to incur capital expenditure of $6 billion in 2017.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, PG&E Corp.'s stock has an average Growth Score of 'C', however its Momentum is doing a bit better with a 'B'. The stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is more suitable for momentum investors than value and growth investors.

Outlook

The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Pacific Gas & Electric Co. (PCG) - free report >>