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Can PG&E Beat 1Q18 Earnings Estimate?

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Apr. 27 2018, Published 1:00 p.m. ET

Earnings per share

California-based PG&E (PCG) is set to report its 1Q18 earnings on May 3. The analyst consensus is that it should report EPS (earnings per share) of $1.04 for the quarter, which ended on March 31. For 1Q17, it reported EPS of $1.06.

PCG stock witnessed a significant weakness after it was speculated that it was one of the causes of the California wildfires in October 2017. However, the stock has rallied more than 20% since its 52-week low in February 2018.

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Growth drivers

According to analyst estimates, PG&E will report total revenues of $4.25 billion for 1Q18. It reported revenues of $4.27 billion in 1Q17.

Management hasn’t provided an earnings guidance for 2018 due to uncertainties regarding liability damages from the wildfires. The company suspended its dividends in 4Q17 and reported $82 million in costs associated with the fires.

PG&E intends to invest $6.3 billion and $6 billion in capital projects for 2018 and 2019, respectively. Capital investments are expected to grow its rate base by 7.5% annually.

Its peers Edison International (EIX) and Sempra Energy (SRE) are scheduled to report their quarterly earnings on May 1 and May 7, respectively.

Next, let’s look at PG&E’s valuation and chart indicators.

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