NEW YORK (TheStreet) -- Shares of PG&E (PCG) - Get Report were gaining 0.4% to $52.04 Tuesday ahead of the natural gas and electricity utility company's second quarter financial report which is due before the market opens on Wednesday.
Analysts expect Exelon to report earnings of 72 cents a share and revenue of $3.94 billion for the second quarter.
In the first quarter of 2015 Exelon reported earnings of 87 cents a share, above analysts' estimates of 70 cents a share for the quarter. The San Francisco-based company reported revenue of $3.9 billion for the first quarter, below analysts' estimates of $3.99 billion.
Exelon reported earnings of 69 cents a share for the second quarter of 2014, below analysts' estimates of 74 cents a share. The company saw revenue of $3.95 billion in the year-ago quarter, compared to analysts' estimates of $4.03 billion.
TheStreet Ratings team rates PG&E CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PG&E CORP (PCG) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 11.6%. Since the same quarter one year prior, revenues slightly increased by 0.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $1,080.00 million or 40.07% when compared to the same quarter last year. In addition, PG&E CORP has also modestly surpassed the industry average cash flow growth rate of 38.79%.
- PG&E CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PG&E CORP increased its bottom line by earning $3.04 versus $1.84 in the prior year. This year, the market expects an improvement in earnings ($3.57 versus $3.04).
- The debt-to-equity ratio is somewhat low, currently at 1.00, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that PCG's debt-to-equity ratio is low, the quick ratio, which is currently 0.63, displays a potential problem in covering short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Multi-Utilities industry and the overall market, PG&E CORP's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: PCG Ratings Report