The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PG&E beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Margins dropped across the board.
PG&E reported revenue of $3.82 billion. The five analysts polled by S&P Capital IQ wanted to see revenue of $3.41 billion on the same basis. GAAP reported sales were 5.4% higher than the prior-year quarter's $3.62 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.89. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.85 per share on the same basis. GAAP EPS of $0.21 for Q4 were 67% lower than the prior-year quarter's $0.63 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 24.2%, 140 basis points worse than the prior-year quarter. Operating margin was 9.4%, 280 basis points worse than the prior-year quarter. Net margin was 2.2%, 470 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.65 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $15.22 billion. The average EPS estimate is $3.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 288 members out of 305 rating the stock outperform, and 17 members rating it underperform. Among 92 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give PG&E a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PG&E is outperform, with an average price target of $43.56.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.