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PG&E Beats Analyst Estimates on EPS

By Seth Jayson - Updated Apr 10, 2017 at 11:30AM

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Just the facts, Fool.

PG&E (NYSE: PCG) reported earnings on July 31. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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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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. The Motley Fool has no position in any of the stocks mentioned. 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.

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Stocks Mentioned

PG&E Corporation Stock Quote
PG&E Corporation
PCG
$11.14 (0.81%) $0.09

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