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PG&E (PCG) Set to Report Q1 Earnings: What's in the Cards?

Zacks Equity Research
·4-min read

PG&E Corporation PCG is scheduled to report first-quarter 2023 results on May 4 before the opening bell.

In the last reported quarter, the company delivered a negative earnings surprise of 7.14%. It has a four-quarter average earnings surprise of 3.10%.

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 most of the first quarter, PCG’s service territories observed cooler weather conditions. These may have increased the electricity demand for heating purposes from the company’s customers, thus favorably impacting the top line of PG&E. Additionally, some parts of its service territories experienced significant precipitation levels, resulting in wet weather conditions.

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Moreover, favorable rate cases provide a positive outlook for PCG’s first-quarter revenue performance. However, its service territories had to undergo winter storm calamities, which may have interrupted the seamless supply of electricity for its customers, thus partially impairing the overall top line in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $6.21 billion. This suggests growth of 7.1% from the year-ago quarter.

In the first quarter of 2023, strong winter storms, accompanied by heavy rainfall and high winds, may have impacted PG&E’s service territories, causing infrastructural damage, thus increasing the company’s operating expenses for storm restoration and repair. This is likely to have weighed on PCG’s bottom line in the to-be-reported quarter.

This may have been somewhat offset by a positive impact of PCG’s wildfire risk reduction initiatives. Also, the company’s efforts to reduce non-fuel operating & maintenance costs may have partially aided the bottom line.

The Zacks Consensus Estimate for first-quarter earnings is pegged at 29 cents per share. This indicates a decline of 3.3% from the prior-year reported figure.

Pacific Gas & Electric Co. Price and EPS Surprise

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

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

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for PG&E Corporation 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, which is not the case here.

Earnings ESP: The company’s Earnings ESP is +6.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PCG carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are three utility players you may want to consider as these have the right combination of elements to post an earnings beat this season:

Brookfield Renewable Partners BEP has an Earnings ESP of +115.39% and a Zacks Rank #3. The Zacks Consensus Estimate for its first-quarter sales, pegged at $692.7 million, implies a decline of 39% from the prior-year quarter’s tally.

BEP has a four-quarter negative earnings surprise of 271.73%. The Zacks Consensus Estimate for Brookfield’s first-quarter earnings is pegged at a loss of 13 cents per share.

Eversource Energy ES has an Earnings ESP of +0.49% and a Zacks Rank #3. The Zacks Consensus Estimate for ES’ first-quarter earnings is pegged at $1.36 per share, implying growth of 4.6% from the prior-year reported figure.

The Zacks Consensus Estimate for Eversource’s first-quarter sales is pegged at $3.71 billion. This suggests a 7% increase from the prior-year reported figure.

PPL Corporation PPL has an Earnings ESP of +7.69% and a Zacks Rank #3. The Zacks Consensus Estimate for PPL Corporation’s first-quarter revenues is pegged at $1.86 billion, implying growth of 4.2% from the year-ago quarter.

The Zacks Consensus Estimate for PPL’s first-quarter earnings is pegged at 42 cents per share. This indicates growth of 2.4% from the prior-year reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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

PPL Corporation (PPL) : Free Stock Analysis Report

Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report

Eversource Energy (ES) : Free Stock Analysis Report

Brookfield Renewable Partners L.P. (BEP) : Free Stock Analysis Report

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Zacks Investment Research