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Public Service Enterprise (PEG) Q3 Earnings Beat Estimates

Zacks Equity Research

Public Service Enterprise Group Inc. PEG, or PSEG, reported third-quarter 2019 adjusted operating earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate of 95 cents by 3.2%. The bottom line also improved 3.2% on a year-over-year basis.

Excluding one-time adjustments, the company reported quarterly earnings of 79 cents per share compared with 81 cents in third-quarter 2018.

Total Revenues

Revenue of $2,302 million in the quarter missed the Zacks Consensus Estimate of $2,551 million by 9.8%. Moreover, the figure declined 3.8% from the year-ago quarter’s $2,394 million.

Electric sales volumes rose 3% year over year to 12,124 million kilowatt-hours, while gas sales volumes grew 6% year over year to 609 million therms.

Under Electric sales, Residential sales volumes were 4,590 million kilowatt-hours, whereas Commercial and Industrial sales volumes accounted for 7,461 million kilowatt-hours. Other sales accounted for 73 million kilowatt-hours.

Total gas sales volumes witnessed 10% growth in non-firm sales volumes of gas and 6% a decline in firm sales volumes of gas.

Highlights of the Release

During the third quarter of 2019, the company reported operating income of $490 million, down from $554 million in the year-ago quarter. Total operating expenses were $1,812 million, down 1.5% from the year- ago quarter.

Interest expenses in the reported quarter were $147 million compared with $127 million in the year-ago quarter.

Segment Performance

PSE&G: Segment earnings were $344 million, up from $278 million in the prior-year quarter. PSE&G’s results in the quarter were driven by enhanced investments in transmission and distribution programs, rate relief, and changes to pension plans.

PSEG Power: Segment earnings were $53 million, down from $125 million in the prior-year quarter. The downside was led by lower realized energy prices and reduced capacity revenues.

PSEG Enterprise/Other: Segment earnings were $6 million, down from $9 million in the prior-year quarter. The year-over-year decrease in Net Income reflects higher interest expenses at the parent company.

Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise

Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise
Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise

Public Service Enterprise Group Incorporated price-consensus-eps-surprise-chart | Public Service Enterprise Group Incorporated Quote

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Financial Update

Long-term debt as of Sep 30, 2019, was $15,504 million, up from the 2018-end level of $14,462 million.

PSEG generated $2,709 million in cash from operations at the end of the first nine months of 2019 compared to $2,492 million in the same period last year.

2019 Guidance

The company narrowed its 2019 guidance. Adjusted earnings are projected to be $3.20-$3.30 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.24, slightly lower than the mid-point of the company’s guided range.

PSE&G’s operating earnings are anticipated to be $1,225-$1,250 million. The company expects PSEG Power operating earnings to be $395-$420 million.

Zacks Rank

PSEG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

NextEra Energy NEE reported third-quarter 2019 adjusted earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.27 by 5.3%. Moreover, the reported earnings rose 10.1% on a year-over-year basis.

Entergy Corporation ETR reported third-quarter 2019 adjusted earnings of $2.52 per share, which surpassed the Zacks Consensus Estimate of $2.31 by 9.1%. Moreover, the reported figure rose 7.2% from $2.35 per share in the year-ago quarter.

An Upcoming Release

Dominion Energy D is scheduled to report third-quarter 2019 results on Nov 1. The Zacks Consensus Estimate for earnings is pegged at 89 cents per share.

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Entergy Corporation (ETR) : Free Stock Analysis Report
 
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