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Public Service Enterprise (PEG) Q1 Earnings Top, Revenues Rise

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Public Service Enterprise Group Inc. (PEG - Free Report) , or PSEG, reported first-quarter 2021 adjusted operating earnings of $1.28 per share, which beat the Zacks Consensus Estimate of $1.13 by 13.3%. The bottom line also improved 24.3% on a year-over-year basis.

Including one-time adjustments, the company reported GAAP earnings of $1.28 per share compared with 88 cents in first-quarter 2020.

Total Revenues

Revenues of $2,889 million in the quarter missed the Zacks Consensus Estimate of $3,058 million by 5.5%. However, the figure rose 3.9% from the year-ago quarter’s $2,781 million.

Highlights of the Release

During the first quarter of 2021, the company reported an operating income of $741 million, down from $797 million in the year-ago quarter. Total operating expenses were $2,148 million, up 8.3% from the year-ago quarter.

Interest expenses in the reported quarter were $146 million compared with $153 million in the prior-year quarter.

Segment Performance

PSE&G: Segment earnings were $2,073 million, up from $1,883 million in the prior-year quarter.

PSEG Power: Segment earnings were $1,167 million compared with $1,220 million in the prior-year quarter.

PSEG Enterprise/Other: Segment losses were $351 million compared with loss of $322 million in the prior-year quarter.

Financials

Cash, cash equivalents and restricted cash as of Mar 31, 2021, were $841 million compared with $572 million as of Dec 31, 2020.

Long-term debt was $16,775 million as of Mar 31, 2021, compared with $16,180 million at 2020-end.

During the first quarter, PSEG generated cash from operating activities worth $1,027 million compared with $1,153 in the prior-year period.

2021 Guidance

The company reaffirmed its 2021 guidance. Its adjusted earnings are still projected to be in the range of $3.35-$3.55 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.44, slightly 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 also continues to expect 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

DTE Energy Company (DTE - Free Report) reported first-quarter 2021 operating earnings per share (EPS) of $2.44, which surpassed the Zacks Consensus Estimate of $2.16 by 13%.

American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.15, which missed the Zacks Consensus Estimate of $1.23 by 6.5%.

NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2021 adjusted earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 11.7%.

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