PG&E (PCG) Set to Report Q2 Earnings: What's in Store?
PG&E Corporation PCG is scheduled to report second-quarter 2022 results on Jul 28, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 15.38%. The company has a four-quarter average earnings surprise of 0.20%.
Let's take a closer look at the factors that are likely to get reflected in PG&E’s upcoming results.
Factors to Note
During the April-June 2022 quarter, the company’s service territories witnessed warmer-than-normal temperature accompanied with drought conditions in some regions. Such weather patterns are likely to have boosted electricity demand among customers. This, in turn, might have favored the to-be-reported quarter's top line.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $5.58 billion, suggesting growth of 7% from the year-ago quarter.
Pacific Gas & Electric Co. Price and EPS Surprise
Pacific Gas & Electric Co. price-eps-surprise | Pacific Gas & Electric Co. Quote
The above-average temperature prevalent at PG&E Corp’s territory resulted in some wildfire activities during the second quarter of 2022. This in turn might have hampered PG&E Corp’s infrastructure, thereby pushing up its operating costs and in turn hurting its Q2 bottom-line performance.
Nevertheless, PG&E’s strong cost-reduction efforts, along with successful settlement agreements pertaining to the cost recovery for wildfire mitigation, are expected to have contributed to its quarterly bottom line.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 30 cents per share, indicating an improvement of 11.1% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for PCG this time. 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.
PG&E has an Earnings ESP of +1.70% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Other Stocks to Consider
Here are three Utilities players you may want to consider, as these also have the right combination of elements to post an earnings beat this season:
American Electric Power AEP has an Earnings ESP of +6.20% and a Zacks Rank #2. The company boasts a long-term earnings growth rate of 6.20%.You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Electric’s second-quarter revenues and earnings is pegged at $4.19 billion and $1.13, respectively. AEP has a four-quarter average earnings surprise of 2.40%.
Atmos Energy ATO has an Earnings ESP of +1.35% and a Zacks Rank #2. The stock boasts a long-term earnings growth rate of 7.40%.
The Zacks Consensus Estimate for Atmos Energy’s second-quarter revenues and earnings is pegged at $762.6 million and 86 cents, respectively. ATO has a four-quarter average earnings surprise of 1.14%.
Xcel Energy XEL has an Earnings ESP of +0.84% and a Zacks Rank #2. The stock boasts a long-term earnings growth rate of 6.40%.
The Zacks Consensus Estimate for Xcel Energy’s second-quarter revenues and earnings is pegged at $3.16 billion and 60 cents, respectively. XEL has a four-quarter average earnings surprise of 0.37%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Xcel Energy Inc. (XEL) : Free Stock Analysis Report
Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
Atmos Energy Corporation (ATO) : Free Stock Analysis Report
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