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PG&E (PCG) Exceeds Q4 Earnings and Revenue Expectations PG&E (PCG) Exceeds Q4 Earnings and Revenue Expectations

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PG&E (PCG) surprised investors with quarterly earnings of $0.47 per share, beating the Zacks Consensus Estimate of $0.45 per share. This marks a significant improvement from the $0.26 per share earnings a year ago, reflecting an impressive growth trajectory for the company.

These figures, adjusted for non-recurring items, represent an earnings surprise of 4.44%. In the previous quarter, the utility holding company outperformed expectations by delivering earnings of $0.24 per share, defying the anticipated $0.28 per share, albeit by -14.29%.

Although PG&E has exceeded consensus EPS estimates only once in the last four quarters, the current achievement demonstrates promising potential for the company’s growth.

Revenue Surge

Belonging to the Zacks Utility – Electric Power industry, PG&E reported fourth-quarter revenues of $7.04 billion, surpassing the Zacks Consensus Estimate by an impressive 9.48%. This substantial uptick from year-ago revenues of $5.37 billion indicates a robust and sustained financial performance from the company.

Surpassing consensus revenue estimates for the second time in the last four quarters, PG&E is setting a strong precedent for consistent growth and financial stability.

The company’s stock performance in 2023 points to a 6.9% downturn since the beginning of the year, contrasting with the S&P 500’s gain of 4.4% during the same period.

Future Prospects

Given PG&E’s underperformance vis-a-vis the market, investors are pondering the potential trajectory of the stock. The company’s earnings outlook plays a crucial role in painting this picture, with a direct correlation existing between near-term stock movements and trends in earnings estimate revisions.

Prior to this earnings release, PG&E exhibited favorable estimate revisions, leading to a Zacks Rank #2 (Buy) for the stock. This suggests an expected outperformance in the near future, backed by a history of harnessing the power of earnings estimate revisions.

Looking ahead, the consensus EPS estimate for the upcoming quarter is $0.36, with revenues estimated at $6.55 billion. For the full fiscal year, analysts project an EPS of $1.35 on revenues of $24.89 billion, signaling a positive outlook and bullish sentiment for the company.

Industry Performance

It’s imperative to note that the industry’s outlook can significantly influence individual stock performance. In the case of PG&E, the Utility – Electric Power industry currently ranks among the top 42% of the 250-plus Zacks industries. Historical data reveals that being in the top 50% of Zacks-ranked industries outperforms the bottom 50% by more than a 2 to 1 ratio.

Comparatively, Vistra Corp. (VST), a peer company in the same industry, is yet to release its quarterly results for December 2023. The impending results, expected on February 28, anticipate a significantly positive year-over-year change in quarterly earnings alongside a remarkable revenue surge.

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Amidst these insights and prospects, it’s prudent for investors to consider the latest Zacks #1 Rank (Strong Buy) stocks for potential investment opportunities.

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

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