What You Need to Know Ahead of Public Service Enterprise's Earnings Release

Newark, New Jersey-based Public Service Enterprise Group Incorporated (PEG) is a diversified electric and gas utilities company. With a market cap of $43.9 billion, the company operates through PSE&G and PSEG Power segments. The utilities giant is expected to release its Q3 earnings before the market opens on Monday, Nov. 4.

Ahead of the event, analysts expect PEG to report a profit of $0.94 per share, up 10.6% from $0.85 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS projections twice over the past four quarters while missing the estimates on two other occasions. Its adjusted EPS for the last reported quarter declined 10% year-over-year to $0.63, missing the consensus estimates by 1.6%. 

For fiscal 2024, analysts expect PEG to report an adjusted EPS of $3.67, up 5.5% from $3.48 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 11.4% year-over-year to $4.09. 

PEG has gained 44.2% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 21.9% gains and the Utilities Select Sector SPDR Fund’s (XLU) 27.3% returns during the same time frame.

Despite reporting a notable drop in profits, shares of Public Service Enterprise rose 1.4% after the release of its Q2 earnings on Jul. 30. Although the company managed to maintain its operating revenues steady at $2.4 billion, its energy, operation, and maintenance costs experienced a steep surge compared to the year-ago quarter leading to a massive 26.6% year-over-year drop in net income. It reported a staggering 21.2% increase in energy cost to $732 million and a 10.8% surge in operation and maintenance expenses to $824 million. Although the increase in energy cost was offset by changes in commodity and other operating revenues, it still affected the company’s margins negatively. 

On a positive note, PEG reaffirmed its full-year non-GAAP Operating Earnings guidance of $3.60 to $3.70 per share, cushioning investor confidence.

The consensus opinion on PEG stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 20 analysts covering the stock, 10 recommend “Strong Buy,” one advises “Moderate Buy,” and nine suggest “Hold” ratings. The mean price target of $89.82, suggests a 1.9% upside from current price levels. 

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.