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Public Service Enterprise (PEG) Q4 Earnings Miss Estimates

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Public Service Enterprise Group Inc. (PEG - Free Report) , or PSEG, reported fourth-quarter 2020 adjusted operating earnings of 65 cents per share, which missed the Zacks Consensus Estimate of 66 cents by 1.5%. The bottom line, however, improved 1.6% on a year-over-year basis.

Including one-time adjustments, the company reported quarterly earnings of 85 cents per share compared with 86 cents in fourth-quarter 2019.

For 2020, the company reported adjusted operating earnings of $3.43 per share, which missed the Zacks Consensus Estimate of $3.44 by 0.3%. The full-year bottom line, however, improved 4.6% from a year ago.

Total Revenues

Revenues of $2,402 million in the quarter missed the Zacks Consensus Estimate of $2,696 million by 10.9%. Moreover, the figure declined 3.1% from the year-ago quarter’s $2,478 million.

For 2020, the company recorded revenues of $9.6 billion, which missed the Zacks Consensus Estimate of $9.69 billion by 0.9%. Moreover, the full-year top line declined 4.8% from the year-ago quarter’s figure of $10.08 billion.

Highlights of the Release

During the fourth quarter of 2020, the company reported an operating income of $433 million, down from $507 million in the year-ago quarter. Total operating expenses were $1,969 million, down 0.21% from the year-ago quarter.

Interest expenses in the reported quarter were $147 million compared with $152 million in the prior year’s quarter.

Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise

Segment Performance

PSE&G: Segment earnings were $291 million, up from $276 million in the prior-year quarter.

PSEG Power: Segment adjusted earnings were $55 million compared with $52 million in the prior-year quarter.

PSEG Enterprise/Other: Segment adjusted losses were $17 million against the adjusted earnings of $2 million in the prior-year quarter.

Financials

Cash, Cash Equivalents and Restricted Cash as of Dec 31, 2020, were $572 million compared with $176 million as of Dec 31, 2019.

Long-term debt was $16,180 million as of Dec 31, 2020, compared with $15,108 million at 2019-end.

At the end of 2020, cash from operating activities amounted to $3,102 million compared with $3,379 in the prior year.

2021 Guidance

The company issued its 2021 guidance. Adjusted earnings are projected to be $3.35-$3.55 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.38, lower than the midpoint of the company’s guided range.

PSE&G’s operating earnings are anticipated to be $1,700-$1,800 million. The company expects PSEG Power operating earnings to be $280-$370 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

Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.

CMS Energy Corp. (CMS - Free Report) reported fourth-quarter 2020 adjusted earnings per share of 56 cents, which surpassed the Zacks Consensus Estimate of 55 cents by 1.8%.

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