PG&E Goes Negative

PG&E (NYSE: PCG  ) reported earnings on Feb. 21. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PG&E missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share contracted significantly. GAAP earnings per share dropped to a loss.

Margins contracted across the board.

Revenue details
PG&E logged revenue of $3.83 billion. The four analysts polled by S&P Capital IQ expected revenue of $4.18 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.59. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.60 per share. Non-GAAP EPS of $0.59 for Q4 were 34% lower than the prior-year quarter's $0.89 per share. GAAP EPS were -$0.03 for Q4 against $0.20 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 18.9%, 690 basis points worse than the prior-year quarter. Operating margin was 6.8%, 420 basis points worse than the prior-year quarter. Net margin was -0.3%, 250 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.76 billion. On the bottom line, the average EPS estimate is $0.69.

Next year's average estimate for revenue is $15.55 billion. The average EPS estimate is $2.77.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 286 members out of 302 rating the stock outperform, and 16 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give PG&E a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PG&E is outperform, with an average price target of $44.78.

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