PG&E Q2 Earnings Top Estimates, Revenues Increase Y/Y

PG&E Corporation PCG reported second-quarter 2024 adjusted earnings per share of 31 cents, which surpassed the Zacks Consensus Estimate of 30 cents by 3.3%. The bottom line also improved 34.8% from the year-ago quarter's reported figure.

The company reported GAAP earnings of 24 cents per share compared with 19 cents in the prior-year quarter.

The year-over-year improvement in the bottom line can be attributed to an increase in customer capital investment and non-fuel operating and maintenance (O&M) savings.

Revenue Update

PCG reported second-quarter total revenues of $5.99 billion, up 13.2% from $5.29 billion registered in the year-ago period. Operating revenues also surpassed the Zacks Consensus Estimate of $5.83 billion by 2.7%.

Operational Highlights

Total operating expenses in the second quarter of 2024 were $4.85 billion, up 1.4% from the prior-year reported figure.

The company reported an operating income of $1.13 billion compared with $0.51 billion a year ago.

Interest expenses totaled $812 million compared with $640 million in the prior-year quarter.

Financials

As of Jun 30, 2024, cash and cash equivalents totaled $1.32 billion compared with $0.64 billion as of Dec 31, 2023.

Cash flow from operating activities amounted to $2.97 billion for the second quarter of 2024 compared with $2.46 billion in the second quarter of 2023.

Capital expenditures totaled $4.94 billion during the second quarter compared with $4.68 billion in the corresponding period of 2023.

As of Jun 30, 2024, the long-term debt amounted to $52.66 billion compared with $50.98 billion as of Dec 31, 2023.

Guidance

PG&E reaffirmed its 2024 adjusted EPS guidance. The company still expects to generate adjusted earnings in the range of $1.33-$1.37 per share. The Zacks Consensus Estimate for 2024 earnings is pegged at $1.35 per share, which came in line with the midpoint of the company's guided range.

Zacks Rank

PG&E currently carries a Zacks Rank #2 (Buy).

Recent Utility Releases

AVANGRID, Inc. AGR reported second-quarter 2024 earnings of 49 cents per share, which surpassed the Zacks Consensus Estimate of 27 cents by 81.5%. The bottom line also increased 133.3% from the year-ago quarter's figure of 21 cents.

Operating revenues amounted to $1.92 billion, which beat the Zacks Consensus Estimate of $1.72 billion by 11.9%. The top line also increased 21.2% from $1.59 billion reported in the comparable period of 2023.

NextEra Energy, Inc. NEE reported second-quarter 2024 adjusted earnings of 96 cents per share, which beat the Zacks Consensus Estimate of 93 cents by 3.2%. The bottom line was also up nearly 9.1% year over year.

In the second quarter, NextEra Energy's operating revenues were $6.06 billion, which lagged the Zacks Consensus Estimate of $7.26 billion by 16.8%. The top line plunged 17.4% year over year.

CMS Energy Corporation CMS reported second-quarter 2024 adjusted earnings per share of 66 cents, which beat the Zacks Consensus Estimate of 63 cents by 4.8%. However, the bottom line declined 12% from 75 cents reported in the prior-year quarter.

Operating revenues totaled $1.61 billion, which lagged the Zacks Consensus Estimate of $1.69 billion by 5%. However, the top line increased 3.3% on a year-over-year basis.

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