PG&E Corporation’s (PCG) adjusted operating earnings per share of $1.73 in the third quarter of 2014 comfortably surpassed the Zacks Consensus Estimate of $1.15 by 50.4%. The reported figure also increased 96.6% from 88 cents a year ago.
The earnings upside was due to the final decision in the 2014 General Rate Case, which provided for incremental revenues retroactive to the beginning of the year.
GAAP earnings during the quarter were $1.71 compared with 36 cents in the year-ago quarter. The variance between GAAP and pro forma earnings was due to a net 2 cent charge.
Revenue Update
PG&E’s quarterly revenues increased 18.3% to $4,939 million from $4,175 million in the year-ago period. Revenues also surpassed the Zacks Consensus Estimate of $4,869 million.
The Electric business generated revenues of $4,012 million in the quarter (up 14.1% year over year), while Natural Gas clocked revenues of $927 million (up 40.9%).
Expenses
Total operating expenses were $3,874 million, down 0.3% from $3,884 million in the year-ago quarter. This was due to lower operation and maintenance cost.
Guidance
PG&E expects non-GAAP 2014 earnings in the range of $3.45–$3.55 per share. On a GAAP basis, it is expected to fall in the band of $3.06–$3.23 per share.
At the Peer End
CMS Energy Corp. (CMS) reported third-quarter 2014 earnings per share of 37 cents on an adjusted basis. Quarterly earnings lagged the Zacks Consensus Estimate of 41 cents by 9.8% and the year-ago figure of 48 cents by 22.9%.
American Electric Power Company Inc. (AEP) reported third-quarter 2014 operating earnings of $1.01 per share, missing the Zacks Consensus Estimate of $1.03 by 1.9%. The quarterly figure also moved downward from the year-ago profit of $1.10 per share by 8.2%. The weak performance was due to the mild summer. The company’s plan to speed up spending and shift costs from future years into 2014 also negatively affected the quarterly results.
Consolidated Edison (ED) is slated to report its third quarter 2014 results on Nov 6, 2014.
Zacks Rank
Currently, PG&E carries a Zacks Rank #3 (Hold).
PG&E Corporation has an efficient portfolio consisting of regulated electric and gas utility operations. The company is primarily focused on expanding its presence locally and achieving greater success through an emphasis on planning and infrastructure development.
The company has already announced its upcoming spending plan called Pipeline 2020, a program with investments of several hundred billions of dollars spanning over a period of two to three decades. It is aimed at strengthening the company’s natural gas transmission system through a combination of targeted investments, power plant up-gradation, research and development, improved processes and procedures and tighter coordination with public agencies.
However, the cloud of the San Bruno accident continues to hover over the company. In Sep 2014, the company’s subsidiary, Pacific Gas and Electric Company was charged with $1.4 billion in fines and penalties associated with the 2010 San Bruno natural-gas pipeline explosion.
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
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment