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Public Service Enterprise (PEG) Gears Up to Post Q2 Earnings

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Public Service Enterprise Group Inc. (PEG - Free Report) , better known as PSEG, is scheduled to release second-quarter 2021 results on Aug 3, before the opening bell.

The company delivered an earnings surprise of 13.27% in the last reported quarter. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average surprise being 11.68%.

Let’s see how things have shaped up prior to the announcement.

Factors to Consider

During the April-June 2021 quarter, majority of Public Service Enterprise’s service territory areas experienced above-average weather pattern, accompanied with solid precipitation trends. This must have resulted in increased electricity usage by the company’s customers for cooling purpose, which, in turn, is expected to have contributed to the company’s top-line performance in the soon-to-be-reported quarter.

Strong power price across PJM New York and New England is also expected to have boosted its revenues in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for Public Service Enterprise’s second-quarter revenues is currently pegged at $2.34 billion, indicating an improvement of 14% from the year-ago quarter’s reported figure.

Many operational areas of Public Service Enterprise experienced heavy rainfall along with flash floods during the second quarter, which might have impacted the company’s infrastructure, thereby pushing up quarterly operating expenses and dampening the bottom-line performance.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 70 cents per share, which suggests 11.4% deterioration from the year-ago quarter reported figure.

Public Service Enterprise completed the sale of its 467-megawatt-dc PSEG Solar Source LLC portfolio to Quattro Solar LLC, near the end of the second quarter. Sale proceeds from this transaction are expected to benefit Public Service Enterprise’s second-quarter results.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Public Service Enterprise this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.  But that is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Public Service Enterprise carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some players from the Utilities sector with the right combination of elements to post an earnings beat in the to-be-reported quarter.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +0.68% and holds a Zacks Rank #3.

Duke Energy (DUK - Free Report) has an Earnings ESP of +0.15% and carries a Zacks Rank #2.

Consolidated Edison (ED - Free Report) has an Earnings ESP of +1.74% and carries a Zacks Rank #3.

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