The 10-second takeaway
For the quarter ended June 30 (Q2), PG&E missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share contracted slightly. GAAP earnings per share expanded significantly.
Margins expanded across the board.
PG&E notched revenue of $3.78 billion. The six analysts polled by S&P Capital IQ hoped for a top line of $3.90 billion on the same basis. GAAP reported sales were 5.1% higher than the prior-year quarter's $3.59 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.79. The 15 earnings estimates compiled by S&P Capital IQ forecast $0.71 per share. Non-GAAP EPS of $0.79 for Q2 were 2.5% lower than the prior-year quarter's $0.81 per share. GAAP EPS of $0.74 for Q2 were 35% higher than the prior-year quarter's $0.55 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 30.5%, 130 basis points better than the prior-year quarter. Operating margin was 16.8%, 450 basis points better than the prior-year quarter. Net margin was 8.7%, 220 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.21 billion. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $15.60 billion. The average EPS estimate is $2.62.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 286 members out of 307 rating the stock outperform, and 21 members rating it underperform. Among 89 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 85 give PG&E a green thumbs-up, and four 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 $48.65.
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