PG&E Q2 operating revenue misses analyst expectations
PCG•What drove quarterly earnings
- Customer capital investment — the company said higher customer capital investment, resulting in a higher rate base, drove the increase in Q2 earnings.
- O&M cost savings — net operating and maintenance cost savings contributed to higher Q2 earnings.
- Lower return on equity and Wildfire Fund expense — lower CPUC return on equity and increased Wildfire Fund expense partially offset earnings growth.
Analyst sentiment and valuation
The current average analyst rating on the shares is "buy", with 14 "strong buy" or "buy", 3 "hold", and 1 "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 $23.00, about 27% above its July 22 closing price of $18.11. The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago.
