PG&E (PCG) Up 10.9% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for PG&E (PCG). Shares have added about 10.9% 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 the most recent earnings report in order to get a better handle on the important catalysts.
PG&E Corporation Q4 Earnings Miss, Revenues Up Y/Y
PG&E Corporation reported adjusted operating earnings per share of 21 cents in fourth-quarter 2020, which exceeded the Zacks Consensus Estimate of 19 cents by 10.5%. The bottom line, however, declined 69.1% from the year-ago quarter’s figure.
Including one-time items, the company recorded GAAP earnings of 9 cents per share in the fourth quarter against a loss of $1.05 in the prior-year quarter.
For 2020, PG&E Corp.’s adjusted operating EPS came in at $1.61 per share, down 59% from the prior-year quarter’s $3.93. The figure however just exceeded the Zacks Consensus Estimate of $1.60 by 0.6%.
Revenue Update
PG&E Corp’s total revenues of $4,748 million surpassed the Zacks Consensus Estimate of $4,675 million by 1.6%. The top line also rose 0.1% from the year-ago quarter.
For 2020, PG&E Corp.’s revenues were $18,469 million, up 7.8% from the prior-year quarter’s $17,129 million. The figure however declined the Zacks Consensus Estimate of $18,790 million by 1.7%.
Operational Highlights
Total operating expenses, as of Dec 31, 2020, totaled $16,714 million, which declined 38.6% from $27,223 million as of Dec 31, 2019. The decrease was due to lower wildfire-related claims, net of insurance recoveries.
The company reported operating income of $1,755 million, as of Dec 31, 2020, against the operating losses of $10,094 million as of Dec 31, 2019.
Interest expenses, as of Dec 31, 2020, summed $1,260 million compared with $934 million as of Dec 31, 2019.
2021 Guidance
PG&E Corporation issued 2021 guidance for consolidated GAAP losses of $0.52-$0.38 per share, which includes non-core items.
On a non-GAAP basis, the guidance range for 2021 core earnings was reaffirmed at $0.95-$1.05 per share. The Zacks Consensus Estimate for the company’s 2021 earnings, pegged at $1.00 per share, lies at the mid-point of the company’s guided range.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
VGM Scores
At this time, PG&E has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
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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