PG&E Corporation PCG is scheduled to report second-quarter 2023 results on Jul 27, before the opening bell.
In the last reported quarter, the company’s earnings came in line with the Zacks Consensus Estimate. The company has a four-quarter average negative earnings surprise of 0.75%.
Let’s take a closer look at the factors that are likely to get reflected in PG&E’s upcoming results.
Factors to Note
During most of the second quarter, PCG’s service territories observed mixed weather pattern followed by colder-than-normal temperatures, accompanied with precipitation. Such a weather pattern is thus likely to have had a mixed impact on the company’s overall revenues in the soon-to-reported quarter.
Moreover, favorable rate cases provide a positive outlook for PCG’s second-quarter revenue performance.
Public Service Enterprise Group Incorporated Price and EPS Surprise
Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote
The Zacks Consensus Estimate for revenues is pegged at $5.55 billion, indicating growth of 8.4% from the year-ago quarter’s level.
The company has been lately witnessing lower non-fuel operating & maintenance (O&M) costs, driven by wildfire self-insurance and incremental vegetation management savings. We expect to observe this trend in the second-quarter results as well. Such reduced O&M expenses, along with solid sales growth, are likely to have boosted PCG’s overall bottom-line performance.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 30 cents per share, implying year-over-year growth of 20%.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for PG&E this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PCG currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three Utility players that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle.
Ameren AEE has an Earnings ESP of +11.82% and a Zacks Rank #3 at present. The stock has a four-quarter average earnings surprise of 4.70%.
Ameren boasts a long-term earnings growth rate of 6.4%. The Zacks Consensus Estimate for AEE’s second-quarter earnings and sales is pegged at 70 cents per share and $1.73 billion, respectively.
Public Service Enterprise Group PEG has an Earnings ESP of +15.20% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter earnings is pegged at 63 cents per share, implying a 1.6% decrease from that reported in the prior-year quarter.
The consensus mark for PEG’s sales is pegged at $2.03 billion. The company has a four-quarter average earnings surprise of 4.33%.
Edison International EIX has an Earnings ESP of +4.63% and a Zacks Rank #3 at present. The consensus estimate for second-quarter earnings is pinned at 91 cents per share, indicating a 3.2% year-over-year decline.
Edison International boasts a four-quarter average earnings surprise of 3.70%. The consensus mark for EIX’s second-quarter sales is pegged at $4.26 billion, indicating growth of 6.4% from that recorded in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>Ameren Corporation (AEE) : Free Stock Analysis Report
Edison International (EIX) : Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
Pacific Gas & Electric Co. (PCG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
