Oakland, California-based PG&E Corporation (PCG) is a holding company with interests in energy-based businesses. Valued at $51.02 billion by market cap, the company, through its subsidiary, Pacific Gas and Electric Company, sells and delivers electricity and natural gas to 16 million Californians across a 70,000-square-mile service area in Northern and Central California. The leading energy holding company is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Thursday, Jul. 25.
Ahead of the event, analysts expect PCG to report a profit of $0.30 per share on a diluted basis, up 30.4% from $0.23 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecasts on two occasions. During the previous quarter, PCG connected more than 2,200 new residential and business customers to its electric system and installed 500 electric vehicle charging ports.
For fiscal 2024, analysts expect PCG to report EPS of $1.35, up 9.8% from $1.23 in fiscal 2023.
PCG stock has underperformed the S&P 500’s ($SPX) 18.8% gains on a YTD basis, with shares down 1.7% during this period. Similarly, it underperformed the Utilities ETF Vanguard’s (VPU) 11.2% gains over the same time frame.
PCG’s overall performance can be attributed to its Q1 results and optimistic full-year outlook. On Apr. 25, the company reported its Q1 results, and its shares closed up marginally on the day the results were released. Its non-GAAP core EPS came in at $0.37, representing an increase of 27.6% year over year. Its operating expenses fell 17% year over year to $4.59 billion, partly due to lower fuel costs.
The company expects greater demand for electricity from electric vehicles and data centers to fuel the 1% to 3% annual power load growth in the near term and a 70% load growth over the next two decades as California uses electrification to reach its climate-focused goals by 2045. PCG raised its full-year GAAP EPS guidance from $1.10 and $1.14 to $1.15 and $1.20. It affirmed its 2024 non-GAAP core EPS guidance of between $1.33 and $1.37.
Analysts’ consensus opinion on PCG stock is bullish, with a “Strong Buy” rating overall. Out of 14 analysts covering the stock, 10 advise a “Strong Buy” rating, one has a “Moderate Buy” rating, and three recommend a “Hold.” The average analyst price target for PCG is $20.73, indicating a 17% potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
