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PG&E posts lower-than-expected earnings and revenue in Q1

EditorRachael Rajan
Published 04/25/2024, 06:56 AM
© Reuters.

OAKLAND, Calif. - PG&E Corporation (NYSE: NYSE:PCG) reported its first-quarter financial results, revealing a slight decrease in adjusted earnings per share (EPS) and a significant revenue shortfall compared to analyst expectations.

The company's adjusted EPS for the first quarter was $0.34, falling short of the analyst estimate of $0.35. Revenue for the quarter was reported at $5.86 billion, which did not meet the consensus estimate of $6.58 billion.

In comparison to the same period last year, PG&E's GAAP earnings rose from $0.27 per share to $0.34 per share, and its adjusted EPS increased from $0.29 per share to $0.37 per share. Despite the year-over-year (YoY) growth in earnings, the company's revenue saw a decline from the previous year's $6.21 billion.

PG&E's CEO Patti Poppe expressed the company's ongoing commitment to safety and wildfire risk reduction, as well as efforts to build a clean, climate-resilient energy system for California. The company's operational achievements included the completion of a 300-mile in-line inspection of a major natural gas transmission line and the installation of nearly 500 electric vehicle charging ports.

Looking ahead, PG&E provided updated GAAP earnings guidance for 2024, projecting a range of $1.15 to $1.20 per share, which is an increase from the previous guidance of $1.10 to $1.14 per share. The adjusted EPS guidance for 2024 remains unchanged at $1.33 to $1.37 per share. The midpoint of the adjusted guidance range is $1.35, which will be compared to future analyst consensus estimates.

The company also highlighted its five-year financing plan, which includes funding $62 billion in safety and reliability capital expenditures without the need for new equity in 2024. This plan supports PG&E's commitment to substantial dividend growth over the next five years and anticipates up to $3 billion in potential equity needs from 2025 to 2028.

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The increase in GAAP results from last year was primarily due to an increase in customer capital investment, non-fuel operating and maintenance savings, and lower costs related to the Wildfire Fund amortization expense. PG&E Corporation uses non-GAAP core earnings to provide a measure that allows investors to compare the underlying financial performance of the business from one period to another, exclusive of non-core items.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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