Analysts Project Profit Increase for PG&E Ahead of Q1 Earnings

PG&E Corporation (PCG), valued at a market cap of $44 billion, provides electricity and natural gas to customers in northern and central California. Based in Oakland, California, the company generates energy through various sources, including nuclear, hydroelectric, fossil fuel-fired, fuel cell, and photovoltaic methods. PG&E is set to announce its fiscal Q1 earnings for the 2025 fiscal year before the market opens on Thursday, April 24.

Q1 Earnings Expectations

As the earnings announcement approaches, analysts project that PG&E will report a profit of $0.40 per share. This figure represents an 8.1% increase from the $0.37 per share earned in the same quarter last year. Notably, the company has consistently met or exceeded Wall Street’s earning estimates over the last four quarters. In Q4 2024, PCG’s EPS of $0.31 was in line with the consensus expectations.

Forecast for Fiscal 2025 and Beyond

Looking ahead to fiscal 2025, analysts anticipate that PG&E’s profit will reach $1.50 per share, representing a 10.3% increase from $1.36 in fiscal 2024. Additionally, EPS is projected to grow by 8.7% year-over-year to $1.63 in fiscal 2026.

Stock Performance Review

Over the past 52 weeks, shares of PCG have decreased by 1.5%. This performance lags behind the S&P 500 Index ($SPX), which has risen by 2.1%, and the Utilities Select Sector SPDR Fund (XLU), which has seen a 16.3% increase during the same period.

Market Reaction and Analyst Ratings

After releasing its Q4 earnings on February 13, PCG’s shares closed down 1.1%. The core earnings of $0.31 per share matched analysts’ consensus estimates. On a positive note, the company updated its fiscal 2025 core EPS guidance to between $1.47 and $1.51. However, the Q4 core EPS represented a 34% decline compared to the previous year’s quarter, while full-year 2024 revenue was slightly lower at $24.4 billion, mainly due to decreased natural gas sales. These elements may have contributed to a dip in investor confidence.

Overall, Wall Street analysts express moderate optimism regarding PG&E’s stock. The stock currently holds a “Moderate Buy” rating. Out of 16 analysts covering the stock, 11 recommend a “Strong Buy,” four suggest a “Hold,” and one issues a “Strong Sell” rating. The mean price target for PCG stands at $20.67, indicating a potential upside of 25.5% from current levels.

On the date of publication, Neharika Jain did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

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