PG&E Corporation PCG is scheduled to report first-quarter 2024 results on Apr 25, before the opening bell.

In the last reported quarter, the company reported a negative earnings surprise of 4.44%. The company has a trailing four-quarter average negative earnings surprise of 6.17%.

Let’s take a closer look at the factors that are likely to be reflected in PG&E’s upcoming quarterly results.

Factors to Note

During most of the first quarter, PCG’s service territories observed mixed temperature patterns. While the month of January witnessed normal warm weather, accompanied with precipitation, below-normal temperatures prevailed in the months of February and March. While warm weather patterns must have increased electricity demand from PCG’s customers, thereby boosting first-quarter revenues, a below-normal weather might have negatively impacted the same.

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Moreover, unfavorable weather events like flash floods and a heavy storm caused power outages in some parts of PCG’s service areas, which might have adversely impacted the company’s top line in the soon-to-be-reported quarter.

Nevertheless, favorable outcomes expected from PCG’s general rate case (GRC), as well as revenues authorized in the Wildfire Mitigation and Catastrophic Events (WMCE) proceedings, must have bolstered the company’s first-quarter revenue performance.

The Zacks Consensus Estimate for revenues is pegged at $6.63 billion, indicating growth of 6.8% from the year-ago quarter’s level.

Expenses for restoration work in relation to the storm and flash floods that affected extensive parts of PCG’s service areas in the first quarter might have weighed on its bottom line.

Nevertheless, solid sales growth expectations, along with PCG’s efforts to reduce its non-fuel operation and maintenance (O&M) expenses, are likely to have boosted its overall earnings performance.

The Zacks Consensus Estimate for first-quarter earnings is pegged at 35 cents per share, implying year-over-year growth of 20.7%.

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.

Entergy ETR has an Earnings ESP of +5.71% and a Zacks Rank #3 at present. The company has a long-term earnings growth rate of 7%.

The Zacks Consensus Estimate for ETR’s first-quarter earnings is pegged at $1.40, indicating an improvement of 22.8% year over year. The consensus estimate for sales is pegged at $3.18 billion, implying a 6.5% improvement from the prior-year quarter’s reported numbers.

Exelon EXC has an Earnings ESP of +1.41% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for EXC’s first-quarter earnings is pegged at 71 cents per share, implying a 1.4% increase from that reported in the prior-year quarter.

The consensus mark for EXC’s sales is pinned at $5.73 billion, implying an improvement of 3% year over year. The company has a trailing four-quarter average earnings surprise of 2.64%.

PPL Corp. PPL has an Earnings ESP of +0.98% and a Zacks Rank #3 at present. The consensus estimate for first-quarter earnings is pinned at 51 cents per share, indicating a 6.3% increase year over year.

PPL delivered a trailing four-quarter average earnings surprise of 0.13%. The consensus mark for first-quarter sales is pegged at $2.48 billion, indicating growth of 2.6% from that recorded in the prior-year quarter.

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