PG&E swings to loss on $2.5 billion wildfire-related charges, raises full-year outlook for charges – MarketWatch

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Shares of PG&E Corp.

PCG, -10.37%

sank 3.5% in premarket trading Thursday after the utility swung to a large third-quarter loss, citing charges for claims related to wildfires and raised its outlook for full-year charges, but also beat earnings expectations when excluding those charges. The electric and natural gas utility reported a net loss of $1.62 billion, or $3.06 a share, after net income of $564 million, or $1.09 a share, in the year-ago period. Excluding “items impacting comparability” (IIC), such as a $2.5 billion charge for wildfire-related claims, adjusted earnings per share fell to $1.11 from $1.13, above the FactSet consensus of $1.03. Adjusted EPS declined primarily because of vegetation management costs, resolution of 2018 regulatory items and an increase in shares outstanding. Revenue rose to $4.43 billion from $4.38 billion. The utility said it was not providing earnings guidance for 2019, given continuing uncertainty related to the 2017 Northern California wildfires, the 2018 Camp fire, the 2019 Kincade fire and Chapter 11 proceedings. The company raised its 2019 IIC guidance to $6.2 billion to $6.3 billion from guidance provided in August of $5.20 billion to $5.66 billion. The stock has plummeted 61.9% over the past three months through Wednesday, while the SPDR Utilities Select Sector ETF

XLU, -1.50%

gained 4.5% and the S&P 500

SPX, +0.50%

advanced 6.7%.

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