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PG&E Corp. (PCG) Q2 Earnings, Revenues Miss Estimates
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PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 66 cents in the second quarter of 2016 lagged the Zacks Consensus Estimate of 94 cents by 29.8%.
Earnings declined 27.5% from 91 cents reported in the year-ago quarter. The decline in earnings was due to some timing related tax expenses and refueling outages at Diablo Canyon Power Plant. This was partially offset by higher rate base earnings in the reported quarter.
GAAP earnings during the quarter were 41 cents per share compared with 83 cents per share a year ago. The difference between operating and GAAP earnings in the reported quarter was due to pipeline related expenses of 3 cents, legal and regulatory expenses of 2 cents, fines and penalties of 22 cents and GT&S capital disallowance of 23 cents. There was, however, a gain of 25 cents from insurance recovery.
Revenue Update
PG&E’s total revenue of $4,169 million in the quarter fell short of the Zacks Consensus Estimate of $4,217 million by 1.1%. Revenues also declined 1.1% from the year-ago period.
Electric revenues were increased a nominal 0.06% from the year-ago quarter while natural gas revenues were down 6.6%.
Operational Highlight
Total operating expenses in the second quarter were $3,768 million, up 6.7% from $3,530 million in the year-ago period. Costs in the quarter rose due to higher operation and maintenance expenses.
Operating income came in at $401 million, down from $687 million in the second quarter 2015.
Interest expenses in the reported quarter were $207 million compared with $192 million in the year-ago quarter.
The utility has reiterated its 2016 adjusted earnings from operations guidance of $3.65−$3.85 per share.
The company had earlier projected capital expenditure to be $5.6 billion for 2016 and in the range of $5.4–$6.4 billion annually from 2017 to 2019.
Peer Releases
CMS Energy Corp. (CMS - Free Report) reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%.
DTE Energy Co. (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%.
American Electric Power Co. (AEP - Free Report) reported second-quarter 2016 operating earnings of 95 cents per share, beating the Zacks Consensus Estimate of 90 cents by 5.6%.
Zacks Rank
PG&E Corporation carries a Zacks Rank #2 (Buy).
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PG&E Corp. (PCG) Q2 Earnings, Revenues Miss Estimates
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 66 cents in the second quarter of 2016 lagged the Zacks Consensus Estimate of 94 cents by 29.8%.
Earnings declined 27.5% from 91 cents reported in the year-ago quarter. The decline in earnings was due to some timing related tax expenses and refueling outages at Diablo Canyon Power Plant. This was partially offset by higher rate base earnings in the reported quarter.
GAAP earnings during the quarter were 41 cents per share compared with 83 cents per share a year ago. The difference between operating and GAAP earnings in the reported quarter was due to pipeline related expenses of 3 cents, legal and regulatory expenses of 2 cents, fines and penalties of 22 cents and GT&S capital disallowance of 23 cents. There was, however, a gain of 25 cents from insurance recovery.
Revenue Update
PG&E’s total revenue of $4,169 million in the quarter fell short of the Zacks Consensus Estimate of $4,217 million by 1.1%. Revenues also declined 1.1% from the year-ago period.
Electric revenues were increased a nominal 0.06% from the year-ago quarter while natural gas revenues were down 6.6%.
Operational Highlight
Total operating expenses in the second quarter were $3,768 million, up 6.7% from $3,530 million in the year-ago period. Costs in the quarter rose due to higher operation and maintenance expenses.
Operating income came in at $401 million, down from $687 million in the second quarter 2015.
Interest expenses in the reported quarter were $207 million compared with $192 million in the year-ago quarter.
PG&E CORP Price, Consensus and EPS Surprise
PG&E CORP Price, Consensus and EPS Surprise | PG&E CORP Quote
Guidance
The utility has reiterated its 2016 adjusted earnings from operations guidance of $3.65−$3.85 per share.
The company had earlier projected capital expenditure to be $5.6 billion for 2016 and in the range of $5.4–$6.4 billion annually from 2017 to 2019.
Peer Releases
CMS Energy Corp. (CMS - Free Report) reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%.
DTE Energy Co. (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%.
American Electric Power Co. (AEP - Free Report) reported second-quarter 2016 operating earnings of 95 cents per share, beating the Zacks Consensus Estimate of 90 cents by 5.6%.
Zacks Rank
PG&E Corporation carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>