PG&E Q1 Earnings Lower Than Expected, Revenues Increase Y/Y

PG&E Corporation PCG reported first-quarter 2025 adjusted earnings per share (EPS) of 33 cents, which lagged the Zacks Consensus Estimate of 35 cents by 5.7%. The bottom line also declined 10.8% from the year-ago quarter’s reported figure of 37 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The company reported GAAP earnings of 28 cents per share compared with 34 cents in the prior-year quarter.

The year-over-year decline in the bottom line can be attributed to the lower return on equity related to the most recent cost of capital decision, along with the dilutive impact of PG&E Corporation’s 2024 equity offering.

PCG’s Revenue Update

PCG reported first-quarter total revenues of $5.98 billion, up 2.1% from $5.86 billion registered in the year-ago period. However, the top line missed the Zacks Consensus Estimate of $6.11 billion by 2.1%.

Operational Highlights of PCG

Total operating expenses in the first quarter of 2025 were $4.76 billion, up 3.9% from the prior-year reported figure.

The company reported an operating income of $1.22 billion compared with $1.28 billion in the prior year.

Interest expenses totaled $734 million compared with $715 million in the prior-year quarter.

Financial Condition of PCG

As of March 31, 2025, cash and cash equivalents totaled $2.02 billion compared with $0.94 billion as of Dec. 31, 2024.

Cash flow from operating activities amounted to $2.85 billion for the first quarter of 2025 compared with $2.26 billion in the first quarter of 2024.

Capital expenditures totaled $2.64 million during the first quarter, which almost came in line with the year-ago quarter’s reported figure.

As of March 31, 2025, the long-term debt amounted to $52.66 billion compared with $53.57 billion as of Dec. 31, 2024.

PCG’s 2025 Guidance

PG&E reaffirmed its 2025 adjusted EPS guidance. The company still expects to generate adjusted earnings in the range of $1.48-$1.52 per share. The Zacks Consensus Estimate for 2025 earnings, pegged at $1.50 per share, came in line with the midpoint of the company’s guided range.

PCG’s Zacks Rank

PG&E currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Release

NextEra Energy, Inc. NEE reported first-quarter 2025 adjusted earnings of 99 cents per share, which beat the Zacks Consensus Estimate of 97 cents by 2.1%. The bottom line was also up nearly 8.8% year over year.

In the first quarter, NextEra Energy’s operating revenues were $6.24 billion, which lagged the Zacks Consensus Estimate of $7.34 billion by 14.9%. However, the top line improved 9% year over year.

Upcoming Utility Releases

Entergy Corporation ETR is set to report first-quarter 2025 results on April 29, before market open. The Zacks Consensus Estimate for ETR’s first-quarter earnings is pegged at 62 cents per share, which indicates an improvement of 14.8% from the prior year quarter’s figure.

The Zacks Consensus Estimate for ETR’s first-quarter sales is pegged at $3.01 billion, which implies an improvement of 7.6% from the prior-year quarter’s figure.

Edison International EIX is slated to report first-quarter 2025 results on April 29, after market close. The Zacks Consensus Estimate for EIX’s first-quarter earnings is pegged at $1.37 per share, which indicates an improvement of 21.2% from the prior year quarter’s figure.

The Zacks Consensus Estimate for EIX’s first-quarter sales is pegged at $4.15 billion, which calls for an improvement of 1.8% from the prior-year quarter’s figure.

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This article originally published on Zacks Investment Research (zacks.com).

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