Why Shares of PG&E Are Plunging Today
Shares of PG&E (NYSE: PCG) fell more than 13% on Thursday after the bankrupt California utility reported third-quarter results and raised 2019 cost estimates, warning that its complicated restructuring could take longer than expected to complete. Most of the news was worrisome for shareholders, who are holding out hope the company's equity will retain some value upon PG&E's emergence from bankruptcy protection.
PG&E, which filed for bankruptcy in January to deal with more than $30 billion in liabilities stemming from the 2018 Camp fire in Northern California, actually reported adjusted earnings per share that came in $0.10 above expectations. But investors were understandably more focused on the utility raising its 2019 full-year cost guidance to $6.2 billion to $6.3 billion, up from $3.8 billion to $4.1 billion, due to costs associated with fires.
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Source Fool.com
