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PG&E Corporation (PCG) Q4 Earnings Miss, Revenues Up Y/Y

Zacks Equity Research

PG&E Corporation PCG reported adjusted operating earnings per share of 68 cents in fourth-quarter 2019, which missed the Zacks Consensus Estimate of 77 cents by 11.7%. The bottom line, moreover, declined 15% from the year-ago quarter’s figure.

Including one-time items, the company incurred a GAAP loss of $6.84 per share compared with a loss of $13.24 in the prior-year quarter.

For 2019, PG&E Corp.’s adjusted operating EPS came in at $3.93 per share, down 1.75% from the prior-year quarter’s $4. The figure also missed the Zacks Consensus Estimate of $4.01 by 2%.

Revenue Update

PG&E Corp’s total revenues of $4,743 million surpassed the Zacks Consensus Estimate of $4,098 million by 15.7%. The top line also rose 18.6% from the year-ago quarter.

For 2019, PG&E Corp.’s revenues were $17,129 million, up 2.2% from the prior-year quarter’s $16,759 million. The figure also exceeded the Zacks Consensus Estimate of $16,610 million by 3.1%.

Pacific Gas & Electric Co. Price, Consensus and EPS Surprise

Pacific Gas & Electric Co. Price, Consensus and EPS Surprise

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

 

Operational Highlights

Total operating expenses, as of Dec 31, 2019, totaled $27,223 million, which increased 2.9% from $26,459 million as of Dec 31, 2018. The increase was due to higher cost of natural gas, elevated operating and maintenance expenses and escalated depreciation, amortization and decommissioning expenses.

The company incurred operating losses of $11,042 million, as of Dec 31, 2019, compared with operating losses of $10,129 million as of Dec 31, 2018.

Interest expenses, as of Dec 31, 2019, summed $934 million compared with $929 million as of Dec 31, 2018.

Guidance

PG&E Corp has not provided a guidance for 2020 GAAP earnings and adjusted earnings from operations due to the continuing uncertainty related to the 2018 Camp Fire, the 2017 Northern California wildfires, the Chapter 11 proceedings, and legislative and regulatory reforms.

PG&E Corp provided 2020 non-core items guidance of approximately $1.4 billion after tax for Chapter 11-related costs, wildfire fund-related costs, investigation remedies and delayed cost recoveries, and GT&S capital audit.

Five-Year Financial Forecast

As a milestone in the process of emerging from Chapter 11 reorganization, PG&E Corp  released a five-year financial forecast highlighting capital and rate base growth along with other material drivers of the business. It also filed three-statement financials with the Bankruptcy Court. The company remains on track to get its Chapter 11 Plan confirmed by Jun 30, 2020.

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

CMS Energy CMS reported fourth-quarter 2019 adjusted earnings per share (EPS) of 68 cents, up 70% from the year-ago quarter’s reported figure of 40 cents. The bottom line, however, missed the Zacks Consensus
Estimate of 69 cents.

NextEra Energy NEE reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.

Dominion Energy D reported fourth-quarter 2019 operating earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.16 by 1.7%.

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