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PG&E Corp (PCG) Earnings Trail Estimates in Q4, Decline Y/Y

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PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 63 cents in fourth-quarter 2017 missed the Zacks Consensus Estimate of 69 cents by 8.7%. Earnings were also down 52.6% from $1.33 reported in the year-ago quarter.

The downside in adjusted earnings was caused by the timing of the 2015 GT&S rate case, which delayed recognition of the full 2016 revenue increase until the fourth quarter of 2016.

 

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GAAP earnings during the quarter were 22 cents per share, compared with $1.36 a year ago.

For 2017, the company reported adjusted operating earnings per share of $3.68 that missed the Zacks Consensus Estimate of $3.69 by a penny. Earnings were also down 2.1% from $3.76 reported in the prior year.

Revenue Update

For 2017, the company reported revenues of $17.14 billion, down 3% from $17.67 billion in the prior year. The figure came in line with the Zacks Consensus Estimate of $17.67 billion.

Electric revenues were down 5.3% from the year-ago levels, while natural gas revenues rose 5.5%.

Operational Highlights

Total operating expenses in 2017 were $14,179 million, down 8.5% from $15,489 million in 2016. Costs declined due to lower cost of electricity as well as operating and maintenance expenses.

Operating income in 2017 came in at $2,956 million, up from $2,177 million in 2016.

Interest expenses in 2017 were $888 million, compared with $829 million in the previous year.

Guidance

PG&E Corp has not provided its guidance for 2018 GAAP earnings and adjusted earnings from operations due to the uncertainty related to the October 2017 Northern California wildfires.

Zacks Rank

PG&E Corp currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Peer Release

NextEra Energy (NEE - Free Report) reported fourth-quarter 2017 adjusted earnings of $1.25 per share, lagging the Zacks Consensus Estimate of $1.31 by 4.6%.

Dominion Energy (D - Free Report) reported fourth-quarter 2017 operating earnings of 91 cents per share, beating the Zacks Consensus Estimate of 88 cents by 3.4%.

Exelon’s (EXC - Free Report) fourth-quarter 2017 operating earnings of 55 cents per share lagged the Zacks Consensus Estimate of 62 cents by 11.3%. 

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