California's Gas & Power Provider Is Investing To Cut Wildfire Ignitions, Cuts Annual Profit Outlook

PG&E Corporation PCG reported third-quarter FY23 operating revenue growth of 9.2% year-over-year to $5.89 billion, beating the consensus of $5.48 billion.

Adjusted EPS was $0.24, lower than $0.29 in 3Q22, missing the consensus of $0.27.

Electric revenue grew 15.7% Y/Y to $4.51 billion, and Natural gas declined by 7.9% Y/Y to $1.38 billion.

Operating income declined 44.8% Y/Y to $401 million, and margin contracted by 665 bps to 6.81%.

"We've continued to cut wildfire ignitions from our equipment this year on top of last year's reductions. We're also on track to reach our 2023 goal to put 350 miles of powerlines underground, part of our breakthrough goal to underground 10,000 miles in the highest fire-risk areas," commented PG&E Corporation CEO Patti Poppe. 

"Undergrounding achieves dramatically greater risk reduction and better reliability at a lower long-term cost compared to maintaining overhead lines," added Poppe.

FY23 Guidance update: PG&E expects GAAP EPS of $0.99 to $1.08 (prior $1.04 to $1.13). 

PCG reaffirmed the Non-GAAP EPS guidance at $1.19 to $1.23 per diluted share versus the $1.21 consensus. 

Price Action: PCG shares are trading lower by 1.95% at $15.86 on the last check Thursday.