It has been about a month since the last earnings report for PSEG (PEG Quick QuotePEG - Free Report) . Shares have added about 2.3% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is PSEG due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Public Service Enterprise Q2 Earnings Match Estimates

Public Service Enterprise Group, or PSEG, reported second-quarter 2021 adjusted operating earnings of 70 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line also declined 11.4% on a year-over-year basis.

Excluding one-time adjustments, the company incurred quarterly losses of 35 cents per share against the quarterly earnings of 89 cents in second-quarter 2020.

Total Revenues

Revenues of $1,874 million in the quarter missed the Zacks Consensus Estimate of $2,336 million by 19.8%. The figure also declined 11.5% from the year-ago quarter’s $2,050 million.

In the quarter, electric sales volumes were 9,430 million kilowatt-hours, while gas sales volumes were 563 million therms.

Under Electric sales, Residential sales volumes were 3,209 million kilowatt-hours, whereas Commercial and Industrial sales volumes accounted for 6,149 million kilowatt-hours. Other sales accounted for 72 million kilowatt-hours.

Total gas sales volumes witnessed a 14% decline in firm sales volumes and 14% growth in non-firm sales volumes of gas.

Highlights of the Release

During the second quarter of 2021, the company incurred an operating loss of $294 million against the operating income of $407 million in the year-ago quarter.

Total operating expenses were $2,168 million, up 32% from the year-ago quarter.

Interest expenses in the reported quarter were $147 million compared with $151 million in the year-ago quarter.

Segment Performance

PSE&G: Operating earnings were $309 million, up from $283 million in the prior-year quarter.

PSEG Power: Operating earnings were $50 million compared with $123 million in the prior-year quarter.

PSEG Enterprise/Other: Operating losses were $3 million compared with a loss of $2 million in the prior-year quarter.

Financial Update

Long-term debt as of Jun 30, 2021, was $15,695 million, up from the 2020-end level of $16,180 million.

PSEG generated $1,049 million in cash from operations at the end of first-half 2021 compared with $1,664 million generated in the first half of 2020.

2021 Guidance

The company updated its 2021 guidance. Its adjusted earnings are still projected to be in the range of $3.40-$3.55 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.51 per share, higher than the midpoint of the company’s guided range.

PSE&G’s operating earnings are anticipated to be $1,725-$1,800 million. The company also continues to expect PSEG Power operating earnings to be $295-$370 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, PSEG has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision has been net zero. Notably, PSEG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.