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The first-quarter results for PG&E Corporation (NYSE:PCG) were released last week, making it a good time to revisit its performance. It was not a great result overall. While revenues of US$6.0b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 14% to hit US$0.28 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
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Following the latest results, PG&E's twelve analysts are now forecasting revenues of US$25.1b in 2025. This would be a reasonable 2.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 33% to US$1.42. In the lead-up to this report, the analysts had been modelling revenues of US$25.5b and earnings per share (EPS) of US$1.43 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for PG&E
There were no changes to revenue or earnings estimates or the price target of US$20.65, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on PG&E, with the most bullish analyst valuing it at US$24.00 and the most bearish at US$15.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await PG&E shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that PG&E's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.2% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that PG&E is also expected to grow slower than other industry participants.