PG&E Reports Mixed Q3 Results, Reaffirms 2021 Guidance; Shares Sink 1.6%


Shares of California-based electric utility firm PG&E Corp. (PCG) closed 1.6% lower on Monday after the company reported mixed results for the third quarter of 2021.

The company provides natural gas and electricity to customers in northern and central California. It generates electricity using nuclear, hydroelectric, fossil fuel-fired, fuel cell and photovoltaic sources.

Adjusted earnings came in at $0.24 per share, higher than $0.22 per share reported in the third quarter of 2020 but lower than the Street’s estimate of $0.26 per share.

Total operating revenues grew to $5.46 billion from $4.88 billion last year. The figure exceeded analysts’ expectations of $5.37 billion. (See Insiders’ Hot Stocks on TipRanks)

Revenues generated by the Electric segment jumped to $4.2 billion from $3.8 billion in the year-ago quarter. Natural gas revenues totaled $1.28 billion, up from $1.1 billion reported in the previous year.

The CEO of PG&E, Patti Poppe, said, “Our leadership team is implementing the necessary systems and processes to run a high-performing utility – over both the short and long term – that will produce triple-bottom-line results for people, the planet, and California’s prosperity.”

“As part of this, we continue to deliver on our wildfire mitigation commitments while initiating bold new actions to reduce risk across our electric system, including undergrounding power lines, calibrating the sensitivity of our automatic shutoff equipment, and executing more vegetation management,” Poppe added.

Notably, the company has reaffirmed its adjusted earnings per share (EPS) guidance for 2021. It expects EPS to lie in the range of $0.95 to $1.05.

Overall, the stock has a Strong Buy consensus rating based on 3 Buys and 1 Hold. The average PG&E price target of $14 implies 21.5% upside potential. Shares have gained 18.2% over the past year.

According to the new TipRanks’ Risk Factors tool, PG&E is at risk mainly from two factors: Finance & Corporate and Legal & Regulatory, which account for 34% and 32%, respectively, of the total 32 risks identified for the stock.

Under the Finance & Corporate risk category, the company has 11 risks, and under the Legal & Regulatory category, there are 10 risks. The details of these risks can be found on the TipRanks website.

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