It has been about a month since the last earnings report for PG&E (PCG). Shares have added about 11.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PG&E due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
PG&E Corporation Q1 Earnings Miss Estimates, Down Y/Y
PG&E Corporation reported adjusted operating earnings per share of 89 cents in first-quarter 2020, which missed the Zacks Consensus Estimate of 98 cents by 9.2%. The bottom line, moreover, declined 14.4% from the year-ago quarter’s $1.04.
Including one-time items, the company reported GAAP earnings of 57 cents per share compared with 25 cents in the prior-year quarter.
PG&E Corp’s total revenues of $4,306 million rose 7.4% from the year-ago quarter’s $4,011 million.
Operating expenses, as of Mar 31, 2020, totaled $3,651 million, which declined 6% from $3,822 million, as of Mar 31, 2019. The decline was due to a reduction in the cost of electricity and natural gas, and operating and maintenance expenses.
The company reported an operating income of $655 million, as of Mar 31, 2020, compared with an operating income of $189 million, as of Mar 31, 2019.
Interest expenses, as of Mar 31, 2020, summed $254 million compared with $103 million, as of Dec 31, 2019.
PG&E Corp. has not provided any guidance for 2020 GAAP earnings and adjusted earnings from operations.
However, it has provided 2020 non-core items guidance of approximately $2.1-$2.3 billion after tax for bankruptcy and legal costs, wildfire insurance fund contributions, investigation remedies and delayed cost recovery, and the 2011 GT&S capital audit.
How Have Estimates Been Moving Since Then?
Estimates review followed an upward path over the past two months.
Currently, PG&E has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
PG&E has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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