According to Benzinga Pro, during Q3, PG&E (NYSE:PCG) earned $459.00 million, a 27.5% increase from the preceding quarter. PG&E also posted a total of $5.39 billion in sales, a 5.39% increase since Q2. PG&E earned $360.00 million, and sales totaled $5.12 billion in Q2.

What Is ROIC?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q3, PG&E posted an ROIC of 0.64%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For PG&E, the positive return on invested capital ratio of 0.64% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Upcoming Earnings Estimate

PG&E reported Q3 earnings per share at $0.29/share, which beat analyst predictions of $0.18/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.