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Public Service Enterprise (PEG) Q2 Earnings Beat Estimates

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Public Service Enterprise Group Inc. (PEG - Free Report) , or PSEG, reported second-quarter 2020 adjusted operating earnings of 79 cents per share, which exceeded the Zacks Consensus Estimate of 59 cents by 33.9%. Moreover, the bottom line rallied 36.2% on a year-over-year basis.

Excluding one-time adjustments, the company reported quarterly earnings of 89 cents per share compared with 30 cents in second-quarter 2019.

Total Revenues

Revenues of $2,050 million in the quarter missed the Zacks Consensus Estimate of $2,297 million by 10.8%. Moreover, the figure declined 11.5% from the year-ago quarter’s $2,316 million.

In the quarter, electric sales volumes were 8,883 million kilowatt-hours, while gas sales volumes were596 million therms.

Under Electric sales, Residential sales volumes were 3,236 million kilowatt-hours, whereas Commercial and Industrial sales volumes accounted for 5,572 million kilowatt-hours. Other sales accounted for 75 million kilowatt-hours.

Total gas sales volumes witnessed a 23% increase in firm sales volumes and a 24% decline in non-firm sales volumes of gas.

Highlights of the Release

During the second quarter of 2020, the company reported operating income of $407 million, up from $160 million in the year-ago quarter. Total operating expenses were $1,643 million, down 23.8 % from the year-ago quarter.

Interest expenses in the reported quarter were $151 million compared with $137 million in the year-ago quarter.

Segment Performance

PSE&G: Segment earnings were $283 million, up from $227 million in the prior-year quarter. PSE&G’s results in the quarter were driven by revenue growth from ongoing capital investment programs.

PSEG Power: The segment’s earnings were $170 million against losses of $40 million reported a year ago.

PSEG Enterprise/Other: The segment’s losses were $2 million compared with losses of $34 million in the second quarter of 2019.

Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise

Long-term debt as of Jun 30, 2020, was $15,673 million, up from the 2019-end level of $15,108 million.

PSEG generated $1,664 million in cash from operations at the end of first-half 2020 compared to $1,824 million generated in the first half of 2019.

2020 Guidance

The company reiterated its 2020 guidance. Adjusted earnings are still projected to be $3.30-$3.50 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.35 per share, lower than the midpoint of the company’s guidance range.

PSE&G’s operating earnings are still anticipated to be $1,310-$1,370 million.
The company expects PSEG Power operating earnings to be in the range of $345-$435 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 - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, surpassing the Zacks Consensus Estimate of $2.50 by 4.4%.

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.

Upcoming Releases

Dominion Energy (D - Free Report) is scheduled to report second-quarter 2020 results on Jul 31. The Zacks Consensus Estimate for quarterly earnings stands at 83 cents per share.

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