Goldman Sachs Reports Disappointing 1Q11 For PG&E

According to Goldman Sachs, PG&E PCG reported a disappointing 1Q2011, with operating EPS of $0.58, well below GS/consensus of $0.89/$0.81 and 1Q2010 of $0.79. Goldman Sachs said that PCG left multiple non-recurring items – including $0.05 of storm costs, $0.07 due to the timing of rate case resolution and revenue recognition, and $0.06 of litigation charges – in ongoing EPS, weighing on results. “The company also disclosed higher than expected San Bruno related operating costs in 2011/2012, of roughly $450m in 2011 and we estimate nearly $300m-$350m in 2012, weighing on GAAP results and cash flows, but likely excluded from operating EPS results.” PG&E closed yesterday at $45.55.