Portland General Electric Q1 adjusted EPS misses estimates, hurt by regulatory and business expenses

Overview

• US electric utility's Q1 adjusted EPS missed analyst expectations

• Q1 net revenue declined yr/yr due to mild winter and lower residential, commercial usage

• Company reaffirmed 2026 adjusted earnings guidance of $3.33-$3.53 per share

Outlook

• Company reaffirms 2026 adjusted earnings guidance of $3.33 to $3.53 per diluted share

• Company expects 2026 energy deliveries to rise 1.5% to 2.5%, weather adjusted

• Company projects 2026 operating and maintenance expense of $810 mln to $830 mln

Result Drivers

• MILD WINTER - Co said unusually mild winter weather led to lower residential and commercial energy usage

• INDUSTRIAL DEMAND - Industrial customer demand grew 10% quarter-over-quarter, driven by continued growth from data center and high tech customers

• REGULATORY AND BUSINESS EXPENSES - Operations and maintenance expense increased due to regulatory adjustment related to the January 2024 storm recovery deferral and business transformation and acquisition expenses

Company press release: ID:nPn438yrza

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy."

• Wall Street's median 12-month price target for Portland General Electric Co is $52.50, about 1.1% above its April 30 closing price of $51.93

• The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 15 three months ago

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