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PG&E Corporation (PCG) Q3 Earnings Top, Revenues Lag Estimates

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PG&E Corporation (PCG - Free Report) reported adjusted operating earnings per share of $1.13 in third-quarter 2018, which surpassed the Zacks Consensus Estimate of $1.12 by 0.9%. The bottom line also increased 0.9% from the year-ago quarter’s tally. This year-over-year upside can be attributed to growth in rate base earnings and probable cost recoveries of insurance premiums incurred in 2018.

Excluding one-time items, the company reported GAAP earnings of $1.09 per share compared with earnings of $10.7 generated in the prior-year quarter.

Revenue Update

PG&E Corp’s total revenues of $4,381 million missed the Zacks Consensus Estimate of $4,548 million by 3.7%. The top line also declined 3% from the year-ago quarter’s number.

While electric revenues decreased 5% from the prior-year quarter’s tally, natural gas revenues improved 5.3% year over year.

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Operational Highlights

Total operating expenses in the reported quarter totaled $3,685 million, up 1.5% from $3,631 million in third-quarter 2017. Costs increased due to higher operating and maintenance expenses.

The company generated operating income of $696 million compared with $886 million registered in last year’s third quarter.

Interest expenses in third-quarter 2018 summed $232 million compared with $220 million in the year-ago period.

Guidance

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

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 Utility Releases

Duke Energy Corporation (DUK - Free Report) reported third-quarter 2018 adjusted earnings of $1.65 per share, which surpassed the Zacks Consensus Estimate of $1.53 by 7.8%. Quarterly earnings also improved 3.8% year over year.

DTE Energy Co. (DTE - Free Report) reported third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.

FirstEnergy Corp. (FE - Free Report) reported third-quarter 2018 operating earnings of 80 cents per share, exceeding the Zacks Consensus Estimate of 73 cents by 9.59%.

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