) adjusted operating earnings per share of 88 cents in the third
quarter of 2013 were ahead of the Zacks Consensus Estimate of 79
cents, backed by higher rate base earnings. However, the reported
figure came in below the year-ago number of 93 cents by 5.4%.
AMER ELEC PWR (AEP): Free Stock Analysis
ALLIANT ENGY CP (LNT): Free Stock Analysis
PG&E CORP (PCG): Free Stock Analysis
UNS ENERGY CORP (UNS): Free Stock Analysis
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On a reported basis, the company clocked earnings per share of 36
cents compared with earnings of 84 cents in the year-ago quarter.
PG&E's top line increased 5.0% to $4,175.0 million in the
quarter from $3,976.0 million in the year-ago period and
surpassed our expectation of $4,132.0 million. Electric revenue
generated $3,517.0 million in the quarter (up 5.8% year over
year), while Natural Gas clocked $658.0 million (up 0.8%).
On the cost front, total operating expenses stood at $3,884.0
million in the quarter, up from the year-earlier level of
PG&E affirmed its full year 2013 operating earnings guidance
range of $2.55-$2.75 per share. On a GAAP basis, the company
expects earnings in the band of $1.60-$1.96 per share.
At the Peer
American Electric Power Company Inc.
) reported third quarter 2013 operating earnings of $1.10 per
share, beating the Zacks Consensus Estimate of $1.08 by 1.9%. The
quarterly figure also improved 7.8% from the year-ago profit
level of $1.02. The improved performance reflects positive
returns from the investments made in the company's regulated
The company holds a Zacks Rank #3 (Hold). In the near term, we
would advise investors to focus on its Zacks Rank #1 (Strong Buy)
UNS Energy Corporation
) and Zacks Rank #2 (Buy) peer
Alliant Energy Corporation
PG&E Corporation nevertheless has a solid portfolio of
regulated utility assets that offer a stable earnings base and
substantial long-term growth potential. The company strives to
optimize generation margins by improving its cost structure,
performance and reliability of its nuclear as well as fossil
Going forward, we expect the company's earnings growth to be
driven by favorable decisions from California Public Utilities
Commission (CPUC) and Federal Energy Regulatory Commission, as
well as long-term supply agreements, diversification into
alternative power sources and infrastructure improvement programs
resulting in rate base growth.
However, the present unfavorable macro backdrop, tepid demand for
electricity, any accidental charges or severe fluctuation in
prices keep us concerned.