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PG&E (PCG) to Report Q1 Earnings: What's in the Offing?

Zacks Equity Research

PG&E Corporation PCG is scheduled to report first-quarter 2020 results on May 1, before market open.

In the last reported quarter, the company delivered a negative earnings surprise of 11.69%. However, the bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the remaining one. The four-quarter positive surprise is 7.35%, on average.

Let’s see, how things are shaping up prior to this announcement.

Factors Under Consideration

Toward the end of February and the entire March, major parts of the company’s service territories experienced below-normal temperatures. This, in turn, is likely to have resulted in higher household expenditure on heating, and thus likely to have boosted PG&E Corp.’s quarterly revenues.

Over the past couple of quarters, PG&E has been witnessing increasing wildfire-related costs alongside other financing expenses. A similar trend was witnessed in the first quarter, considering the 888 incidents of wildfire in California until Apr 27, per the latest update by the state government. Further, midway during the quarter, the company’s service territories witnessed severe storms, which caused several outages in the region.

Such wildfire-related costs and storm-related damages might have led the company to incur significant expenses, which are likely to have impacted its bottom-line performance in the soon-to-be-reported quarter. In line with this, the Zacks Consensus Estimate for first-quarter 2020 earnings per share is pegged at 98 cents, implying an annual decline of 5.8%.

Pacific Gas & Electric Co. Price and EPS Surprise

Pacific Gas & Electric Co. Price and EPS Surprise

Pacific Gas & Electric Co. price-eps-surprise | Pacific Gas & Electric Co. Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for PG&E Corporation 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. But this is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PG&E Corporation carries a Zacks Rank #3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some players from the Utilities sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Algonquin Power & Utilities Corp. AQN has an Earnings ESP of +1.42% and a Zacks Rank #2. The company will announce first-quarter 2020 earnings on May 7.

Consolidated Edison ED has an Earnings ESP of +0.69% and a Zacks Rank #3. The company will announce first-quarter 2020 earnings on May 7.

New Jersey Resources Corporation NJR has an Earnings ESP of +3.86% and a Zacks Rank #3. The company will announce fiscal 2020 second-quarter earnings on May 8.

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Consolidated Edison Inc (ED) : Free Stock Analysis Report
 
Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report
 
NewJersey Resources Corporation (NJR) : Free Stock Analysis Report
 
Algonquin Power & Utilities Corp. (AQN) : Free Stock Analysis Report
 
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