uploads///forest fire _

PG&E: After Q1 Results, SEC Probe Might Drive Its Stock

By

May. 3 2019, Published 8:13 a.m. ET

PG&E

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.

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

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%.

Article continues below advertisement

Earnings highlights

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.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.