OAKLAND, Calif. - PG&E Corporation (NYSE:PCG) reported a slight beat in its fourth quarter earnings, with adjusted EPS of $0.47 surpassing the analyst consensus estimate of $0.46. The company also announced an increase in its non-GAAP core earnings for the full year 2023, amounting to $1.23 per share compared to $1.10 per share for the previous year, marking a significant improvement.
This increase was primarily attributed to higher customer capital investment approved in the 2023 General Rate Case final decision and non-fuel operating and maintenance cost savings, which exceeded the annual reduction target for the second consecutive year.
For the full year 2023, PG&E posted GAAP earnings of $1.05 per share, up from $0.84 per share in 2022. The company highlighted its progress in reducing wildfire ignitions and expanding powerline burial projects, alongside achieving more than 5% savings in non-fuel operating and maintenance costs. PG&E's CEO Patti Poppe expressed optimism about the company's direction, emphasizing safety and financial performance while preparing for the climate challenges ahead.
Looking forward, PG&E raised its 2024 guidance for adjusted EPS to a range of $1.33 to $1.37, with the midpoint of $1.35 aligning with analyst expectations. The company's GAAP earnings guidance for 2024 also saw an uptick, now set at $1.10 to $1.14 per share. These projections reflect PG&E's commitment to cost savings and capital investments aimed at enhancing customer infrastructure.
The company's stock did not show a significant reaction to the in-line results, indicating that the market had anticipated the performance. PG&E's five-year capital plan has been increased to $62B through 2028, a 20% rise to support critical customer infrastructure improvements. Additionally, the company extended its non-GAAP core EPS growth guidance of at least 9% to 2027 and 2028.
The financial results and forward-looking statements were disclosed in a press release on February 22, 2024, and are based on various assumptions and forecasts, including those related to authorized revenues, future expenses, and capital expenditures. PG&E Corporation did not issue equity in 2023 and forecasts no equity needs in 2024, further strengthening its financial position.
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