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Public Service Enterprise (PEG) Q3 Earnings Miss, View Intact
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Public Service Enterprise Group Inc. (PEG - Free Report) or PSEG reported third-quarter 2017 adjusted operating earnings of 82 cents per share, which missed the Zacks Consensus Estimate of 84 cents by 2.4%. The bottom line also declined 6.8% on a year-over-year basis.
Excluding one–time adjustments, the company reported quarterly earnings of 78 cents per share compared with 64 cents in the third-quarter 2016.
Total Revenue
Revenues of $2,263 million in the quarter missed the Zacks Consensus Estimate of $2,545 million by 11.1%. Also, the figure declined 7.6% from the year-ago figure of $2,450 million.
During the reported quarter, electric sales volume declined 8.3% to 11,735 million kilowatt-hours, while gas sales volume decreased 44.2% to 481 million therms.
For electric sales, results reflected a 4.7% drop in the commercial and industrial sector, 13.9% decline in residential sector, 4.8% fall in street lighting and 9.5% drop in interdepartmental sector.
Total gas sales volume in the reported quarter declined on 57.1% drop in non-firm sales volume of gas and 4.2% decline in firm sales volume of gas.
Highlights of the Release
During the third quarter, the company reported operating income of $693 million up from $577 million in the year-ago quarter. Total operating expenses were $1,570 million, down 16.2% from the year-ago quarter figure.
Interest expenses in the reported quarter were $100 million compared with $99 million in the year-ago quarter.
Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise
PSE&G: Segment earnings were $246 million, down from $255 million in the prior-year quarter. Quarterly results reflect PSE&G’s expanded investment in electric and gas transmission and distribution facilities.
PSEG Power: The segment earnings were $158 million compared with $170 million a year ago. The downturn was due to a decline in energy prices and the effect of cooler-than-normal weather on demand and output.
PSEG Enterprise/Other: The segment earnings were $13 million compared with $19 million in the third quarter of 2016.
Financial Update
As of Sep 30, cash and cash equivalents were $278 million compared with $423 million as of Dec 31, 2016.
Long-term debt as of Sep 30 was $12,524 million, up from the 2016-end level of $11,395 million.
Public Service Enterprise Group generated $2,734 million in cash from operations in the nine months, down from the year-ago figure of $2,761.
2017 Guidance
The company maintained its 2017 guidance. Earnings are still projected in the range of $2.80-$3.00.
PSE&G’s operating earnings are anticipated in the band of $945-$985 million. The company also reiterated its PSEG Power operating earnings guidance in $435-$510 million range.
Additionally, PSEG Enterprise/Other’s operating earnings expectations are reaffirmed at $35 million.
Entergy Corporation (ETR - Free Report) reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. The reported number also improved 1.7% from the year-ago figure.
DTE Energy Company (DTE - Free Report) reported third-quarter 2017 operating earnings per share (EPS) of $1.48 missed the Zacks Consensus Estimate of $1.53 by 3.3%. Operating earnings also declined 24.5% from the year-ago figure of $1.96.
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2017 operating EPS of $1.10 missed the Zacks Consensus Estimate of $1.19 by 7.6%. The bottom line also declined 15.4% from $1.30 reported a year ago.
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Public Service Enterprise (PEG) Q3 Earnings Miss, View Intact
Public Service Enterprise Group Inc. (PEG - Free Report) or PSEG reported third-quarter 2017 adjusted operating earnings of 82 cents per share, which missed the Zacks Consensus Estimate of 84 cents by 2.4%. The bottom line also declined 6.8% on a year-over-year basis.
Excluding one–time adjustments, the company reported quarterly earnings of 78 cents per share compared with 64 cents in the third-quarter 2016.
Total Revenue
Revenues of $2,263 million in the quarter missed the Zacks Consensus Estimate of $2,545 million by 11.1%. Also, the figure declined 7.6% from the year-ago figure of $2,450 million.
During the reported quarter, electric sales volume declined 8.3% to 11,735 million kilowatt-hours, while gas sales volume decreased 44.2% to 481 million therms.
For electric sales, results reflected a 4.7% drop in the commercial and industrial sector, 13.9% decline in residential sector, 4.8% fall in street lighting and 9.5% drop in interdepartmental sector.
Total gas sales volume in the reported quarter declined on 57.1% drop in non-firm sales volume of gas and 4.2% decline in firm sales volume of gas.
Highlights of the Release
During the third quarter, the company reported operating income of $693 million up from $577 million in the year-ago quarter. Total operating expenses were $1,570 million, down 16.2% from the year-ago quarter figure.
Interest expenses in the reported quarter were $100 million compared with $99 million in the year-ago quarter.
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
Segment Performance
PSE&G: Segment earnings were $246 million, down from $255 million in the prior-year quarter. Quarterly results reflect PSE&G’s expanded investment in electric and gas transmission and distribution facilities.
PSEG Power: The segment earnings were $158 million compared with $170 million a year ago. The downturn was due to a decline in energy prices and the effect of cooler-than-normal weather on demand and output.
PSEG Enterprise/Other: The segment earnings were $13 million compared with $19 million in the third quarter of 2016.
Financial Update
As of Sep 30, cash and cash equivalents were $278 million compared with $423 million as of Dec 31, 2016.
Long-term debt as of Sep 30 was $12,524 million, up from the 2016-end level of $11,395 million.
Public Service Enterprise Group generated $2,734 million in cash from operations in the nine months, down from the year-ago figure of $2,761.
2017 Guidance
The company maintained its 2017 guidance. Earnings are still projected in the range of $2.80-$3.00.
PSE&G’s operating earnings are anticipated in the band of $945-$985 million. The company also reiterated its PSEG Power operating earnings guidance in $435-$510 million range.
Additionally, PSEG Enterprise/Other’s operating earnings expectations are reaffirmed at $35 million.
Zacks Rank
Public Service Enterprise Group holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Peer Releases
Entergy Corporation (ETR - Free Report) reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. The reported number also improved 1.7% from the year-ago figure.
DTE Energy Company (DTE - Free Report) reported third-quarter 2017 operating earnings per share (EPS) of $1.48 missed the Zacks Consensus Estimate of $1.53 by 3.3%. Operating earnings also declined 24.5% from the year-ago figure of $1.96.
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2017 operating EPS of $1.10 missed the Zacks Consensus Estimate of $1.19 by 7.6%. The bottom line also declined 15.4% from $1.30 reported a year ago.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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