PG&E (PCG) stock fell more than 3% on May 2 after it reported its first-quarter earnings. The weakness in the stock might continue following an investigation regarding wildfire-related losses. According to Reuters, PG&E said that the U.S. Securities and Exchange Commission is investigating PG&E regarding public disclosures and losses associated with wildfires.
PG&E filed for Chapter 11 bankruptcy protection on January 29 due to ~$30 billion in liabilities related to wildfires in 2017 and 2018. “Camp Fire” was the deadliest wildfire in California’s history. The fire killed 86 people in November last year.
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PG&E stock has shown a massive upward movement in the last few months. Since filing for bankruptcy, the stock has rallied more than 70%.
PG&E reported an adjusted EPS of $1.04, which beat the consensus estimates for the quarter ending on March 31. In the first quarter of 2018, PG&E reported an EPS of $0.91. The utility reported $192 million in wildfire-related costs during the quarter. The company hasn’t provided its earnings guidance for 2019 due to uncertainties associated with wildfire-related liabilities.
For the first quarter, PG&E reported total revenues of $4.01 billion—compared to total revenues of $4.06 billion in the first quarter of 2018. PG&E recorded bankruptcy-related costs of $127 million during the quarter. The costs included $114.0 million of debtor-in-possession financing.