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Public Service (PEG) Tops Q4 Earnings, Revenues Drop Y/Y
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Public Service Enterprise Group Inc. (PEG - Free Report) or PSEG reported fourth-quarter 2016 adjusted operating earnings of 54 cents per share, which exceeded the Zacks Consensus Estimate of 52 cents by 3.8%. Earnings also improved 8% on a year-over-year basis, reflecting benefits from the company’s expanded investment program as well as continued growth in its regulated utility.
Excluding one–time adjustments, the company reported a quarterly loss of 19 cents per share, as against earnings of 60 cents at the end of fourth-quarter 2015.
During 2016, the company generated adjusted operating earnings of $2.90 per share, beating the Zacks Consensus Estimate of $2.88 by 0.7%. Earnings however declined by a penny from the year-ago equivalent.
Total Revenue
Revenues of $2,090 million in the reported quarter missed the Zacks Consensus Estimate of $2,288 million by 8.7% and also fell 8.3% from the year-ago figure of $2,278 million.
For 2016, the company recorded revenues worth $9,061 million, which missed the Zacks Consensus Estimate of $9,883 million by 8.3%. Revenues also declined 13% from the year-ago figure of $10,415 million.
During the reported quarter, electric sales volume increased 3% to 9,404 million kilowatt-hours while gas sales volume rose 6.9% to 1,046 million therms.
For electric sales, results reflected a 4.9% volume increase in the residential sector, a 2.2% rise in the commercial and industrial sector and 0.5% growth interdepartmentally. However, sales volume of street lighting dropped 1.9%.
Total gas sales volume in the reported quarter increased on a 31.6% rise in firm sales volume of gas despite a 24.9% decline in non-firm sales volume of gas.
Highlights of the Release
During the fourth quarter, the company incurred operating loss of $175 million as against operating income of $532 million in the year-ago quarter. Total operating expenses were $2,265 million, up 29.7% from the year-ago quarter figure.
Interest expenses in the reported quarter were $97 million, down 4.9% from the year-ago level.
Segment Performance
PSE&G: Segment earnings were $193 million, up from $156 million in the prior-year quarter. Quarterly results reflect growth from expanded investment in electric and gas transmission and distribution facilities.
PSEG Power: The segment suffered a loss of $302 million versus earnings of $149 million a year ago. The downside was due to the impact of incremental depreciation and other expenses of $555 million pre-tax associated with the decision to retire the Hudson and Mercer coal/gas-fired generating stations announced on Jun 1, 2017.
PSEG Enterprise/Other: The segment generated operating income of $11 million, compared with operating earnings of $4 million in the fourth quarter of 2015.
Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise
As of Dec 31, 2016, cash and cash equivalents were $423 million, compared with $394 million as of Dec 31, 2015.
Long-term debt as of Dec 31, 2016 was $11,395 million, up from the 2015-end level of $9,561 million.
Public Service Enterprise Group generated $3,311 million in cash from operations in 2016, down 15.5% from the year-ago figure.
2016 Guidance
The company provided its 2017 guidance. Earnings are projected in the range of $2.80–$3.00.
PSE&G’s operating earnings are expected in the range of $945–$985 million. The company also expects PSEG Power operating earnings in the $435–$510 million band.
PSEG Enterprise/Other’s operating earnings are estimated at $35 million.
Other Utility Releases
FirstEnergy Corp. (FE - Free Report) announced fourth-quarter 2016 operating earnings of 38 cents per share, missing the Zacks Consensus Estimate of 39 cents by 2.6%.Quarterly earnings were down 34.5% year over year.
Entergy Corp. (ETR - Free Report) reported fourth-quarter 2016 operational earnings of 31 cents per share, beating the Zacks Consensus Estimate of 11 cents by 181.8%. The reported number, however, declined 80.4% year over year.
CMS Energy Corp. (CMS - Free Report) reported fourth-quarter 2016 adjusted EPS of 29 cents, in line with the Zacks Consensus Estimate. Quarterly earnings, however, tanked 23.7% year over year.
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Public Service (PEG) Tops Q4 Earnings, Revenues Drop Y/Y
Public Service Enterprise Group Inc. (PEG - Free Report) or PSEG reported fourth-quarter 2016 adjusted operating earnings of 54 cents per share, which exceeded the Zacks Consensus Estimate of 52 cents by 3.8%. Earnings also improved 8% on a year-over-year basis, reflecting benefits from the company’s expanded investment program as well as continued growth in its regulated utility.
Excluding one–time adjustments, the company reported a quarterly loss of 19 cents per share, as against earnings of 60 cents at the end of fourth-quarter 2015.
During 2016, the company generated adjusted operating earnings of $2.90 per share, beating the Zacks Consensus Estimate of $2.88 by 0.7%. Earnings however declined by a penny from the year-ago equivalent.
Total Revenue
Revenues of $2,090 million in the reported quarter missed the Zacks Consensus Estimate of $2,288 million by 8.7% and also fell 8.3% from the year-ago figure of $2,278 million.
For 2016, the company recorded revenues worth $9,061 million, which missed the Zacks Consensus Estimate of $9,883 million by 8.3%. Revenues also declined 13% from the year-ago figure of $10,415 million.
During the reported quarter, electric sales volume increased 3% to 9,404 million kilowatt-hours while gas sales volume rose 6.9% to 1,046 million therms.
For electric sales, results reflected a 4.9% volume increase in the residential sector, a 2.2% rise in the commercial and industrial sector and 0.5% growth interdepartmentally. However, sales volume of street lighting dropped 1.9%.
Total gas sales volume in the reported quarter increased on a 31.6% rise in firm sales volume of gas despite a 24.9% decline in non-firm sales volume of gas.
Highlights of the Release
During the fourth quarter, the company incurred operating loss of $175 million as against operating income of $532 million in the year-ago quarter. Total operating expenses were $2,265 million, up 29.7% from the year-ago quarter figure.
Interest expenses in the reported quarter were $97 million, down 4.9% from the year-ago level.
Segment Performance
PSE&G: Segment earnings were $193 million, up from $156 million in the prior-year quarter. Quarterly results reflect growth from expanded investment in electric and gas transmission and distribution facilities.
PSEG Power: The segment suffered a loss of $302 million versus earnings of $149 million a year ago. The downside was due to the impact of incremental depreciation and other expenses of $555 million pre-tax associated with the decision to retire the Hudson and Mercer coal/gas-fired generating stations announced on Jun 1, 2017.
PSEG Enterprise/Other: The segment generated operating income of $11 million, compared with operating earnings of $4 million in the fourth quarter of 2015.
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 Quote
Financial Update
As of Dec 31, 2016, cash and cash equivalents were $423 million, compared with $394 million as of Dec 31, 2015.
Long-term debt as of Dec 31, 2016 was $11,395 million, up from the 2015-end level of $9,561 million.
Public Service Enterprise Group generated $3,311 million in cash from operations in 2016, down 15.5% from the year-ago figure.
2016 Guidance
The company provided its 2017 guidance. Earnings are projected in the range of $2.80–$3.00.
PSE&G’s operating earnings are expected in the range of $945–$985 million. The company also expects PSEG Power operating earnings in the $435–$510 million band.
PSEG Enterprise/Other’s operating earnings are estimated at $35 million.
Other Utility Releases
FirstEnergy Corp. (FE - Free Report) announced fourth-quarter 2016 operating earnings of 38 cents per share, missing the Zacks Consensus Estimate of 39 cents by 2.6%.Quarterly earnings were down 34.5% year over year.
Entergy Corp. (ETR - Free Report) reported fourth-quarter 2016 operational earnings of 31 cents per share, beating the Zacks Consensus Estimate of 11 cents by 181.8%. The reported number, however, declined 80.4% year over year.
CMS Energy Corp. (CMS - Free Report) reported fourth-quarter 2016 adjusted EPS of 29 cents, in line with the Zacks Consensus Estimate. Quarterly earnings, however, tanked 23.7% year over year.
Zacks Rank
Public Service Enterprise Group currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>