Analysts Are Updating Their PG&E Corporation (NYSE:PCG) Estimates After Its Annual Results

PG&E Corporation (NYSE:PCG) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of US$24b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.3% to hit US$1.15 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PG&E after the latest results.

See our latest analysis for PG&E

Taking into account the latest results, the consensus forecast from PG&E's twelve analysts is for revenues of US$26.1b in 2025. This reflects an okay 6.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 28% to US$1.45. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$25.6b and earnings per share (EPS) of US$1.45 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.

The analysts reconfirmed their price target of US$20.99, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on PG&E, with the most bullish analyst valuing it at US$26.00 and the most bearish at US$15.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of PG&E'shistorical trends, as the 6.8% annualised revenue growth to the end of 2025 is roughly in line with the 7.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.8% annually. So it's pretty clear that PG&E is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on PG&E. Long-term earnings power is much more important than next year's profits. We have forecasts for PG&E going out to 2027, and you can see them free on our platform here.

Even so, be aware that PG&E is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.