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PG&E Corp. (PCG) Beats on Q1 Earnings, Reaffirms Views

PG&E Corporation’s PCG adjusted operating earnings per share of 82 cents in the first quarter of 2016 beat the Zacks Consensus Estimate of 76 cents by 7.9%. However, the reported figure declined 5.7% from 87 cents in the year-ago quarter.

GAAP earnings during the quarter were 22 cents per share versus 6 cents per share a year ago.

Revenue Update

PG&E’s total revenue of $3,974 million in the quarter beat the Zacks Consensus Estimate of $3,859 million by 3%. Revenues also increased 1.9% from $3,899 million in the year-ago period.

Electric revenues were 3.9% higher in the quarter while natural gas revenues were down 4.9%.

Operational Highlight

Total operating expenses in the first quarter were $3,879 million, up 1.3% from $3,828 million in the year-ago period. Costs in the quarter rose due to higher operation and maintenance expenses.

Operating income came in at $95 million, up from $71 million in the first quarter 2015.

Guidance

The utility has maintained its 2016 guidance for adjusted earnings from operations in the range of $3.65−$3.85 per share.

The company had earlier projected capital expenditure to be $5.6 billion for 2016 and in the range of $5.4–$6.5 billion annually from 2017 to 2019.

At Its Peers

CMS Energy Corporation CMS reported first-quarter 2016 adjusted earnings per share of 59 cents, missing the Zacks Consensus Estimate of 68 cents by 13.2%. Quarterly earnings also plunged 19.2% from the year-ago figure of 73 cents.

DTE Energy Company DTE reported first-quarter 2016 operating earnings per share of $1.52, in line with the Zacks Consensus Estimate. Reported earnings, however, dropped 7.9% from the year-ago figure of $1.65.

American Electric Power Co., Inc. AEP reported first-quarter 2016 operating earnings of $1.02 per share, missing the Zacks Consensus Estimate of $1.06 by 3.8%. Earnings also dropped 20.3% from the year-ago figure owing to an unseasonably warm winter that led to weak residential sales and low power prices.

Zacks Rank

Currently, PG&E Corporation carries a Zacks Rank #3 (Hold).

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