PG&E Q3 operating revenue falls and misses estimates

Overview

• US utility's Q3 operating revenue declined yr/yr and missed analyst expectations

• GAAP EPS for Q3 fell yr/yr

• Company reaffirmed 2026 and 2027 non-GAAP core EPS guidance

Outlook

• PG&E reaffirms 2026 non-GAAP core EPS guidance at $1.64-$1.66

• Company maintains 2027 non-GAAP core EPS guidance at $1.78-$1.82

• PG&E says it is on track to achieve 2-4% non-fuel O&M cost reductions

Result Drivers

• LOWER RETURN ON EQUITY - Co said lower CPUC return on equity and higher Wildfire Fund expense weighed on Q3 earnings

• O&M COST SAVINGS - Co said it is on track to achieve targeted reductions in non-fuel operating and maintenance costs

• CUSTOMER CONNECTIONS - Co said increased electric customer and EV charging port connections supported operational progress

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy"

• Wall Street's median 12-month price target for PG&E Corp is $17.00, about 29.3% above its October 21 closing price of $13.15

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 21 - PG&E pegs San Francisco grid takeover cost at $22.5 billion, more than six times city's estimate

• Oct 21 - NextEra Energy's Q3 operating revenue grows less than expected

• Oct 21 - NextEra Energy tops quarterly profit estimates, says Dominion deal on track

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)