PG&E Videos Poor Market Performance Despite Recent Earnings Report

Valued at a market cap of $44.2 billion, PG&E Corporation (PCG) is an energy holding company headquartered in Oakland, California. Its primary subsidiary, Pacific Gas and Electric Company, ranks among the largest natural gas and electric utilities in the United States. The company serves approximately 16 million customers across a 70,000-square-mile area in Northern and Central California, from Eureka to Bakersfield and from the Pacific Ocean to the Sierra Nevada.

Struggles Against Market Trends

Over the past 52 weeks, PG&E’s shares have lagged behind broader market indices. PCG stocks have dropped 4.3%, while the S&P 500 Index ($SPX) has increased by 11.7%. Year-to-date (YTD) figures are even more concerning; PCG’s shares are down 17.4%, compared to a 4.7% decrease in the SPX.

Comparative Underperformance

Looking deeper into the data, PCG has also fallen short of the Utilities Select Sector SPDR Fund’s (XLU) 17.2% gain over the same period and its 4.5% YTD increase.

Recent Earnings Results

On April 11, PCG’s stock rose 2.7% following the company’s Q1 2025 results. Adjusted earnings per share (EPS) were reported at $0.33, missing Wall Street’s expectation of $0.35. Revenue stood at $5.98 billion, also below the anticipated $6.11 billion.

Operational Highlights

Despite the earnings miss, PG&E’s financial performance showed encouraging signs with lower operating expenses, improved cash flow, and increased operating income. The company connected a record number of new customers, expanded its data center pipeline, and made significant strides in wildfire mitigation by burying 258 miles of power lines. Additionally, PG&E launched renewable natural gas facilities to align with California’s clean energy objectives.

Future Outlook

For fiscal 2025, which ends in December, analysts forecast a 10.3% year-over-year growth in PCG’s EPS to $1.50. The company’s earnings surprise history has been mixed, exceeding or meeting expectations in three of the last four quarters while missing in the most recent report.

Analyst Consensus and Ratings

Among the 16 analysts following the stock, the consensus rating has shifted to a “Moderate Buy,” down from a “Strong Buy” three months ago. This consensus is based on 11 “Strong Buy” ratings, four “Holds,” and one “Strong Sell.”

This new configuration is less optimistic than three months prior, which had 13 “Strong Buys.”

Price Target Adjustments

On April 28, Evercore ISI Group analyst Michael Lonegan reiterated an “In-Line” rating for PG&E while raising the stock’s price target from $15 to $17. The mean price target of $21.07 indicates a 26.4% premium from current market prices, with the highest target at $24 suggesting a potential upside of 44%.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information in this article is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The views expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.