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PSEG (PEG) to Report Q3 Earnings: What's in the Offing?

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Public Service Enterprise Group Incorporated (PEG - Free Report) , better known as PSEG, is scheduled to report third-quarter 2021 results on Nov 2, before the opening bell.

In the last reported quarter, the company’s earnings matched the estimates. PSEG has a trailing four-quarter negative earnings surprise of 3.20%, on average.

Factors to Note

During major parts of the third quarter, Public Service Enterprise’s service territory areas experienced warmer-than-normal temperature, which may have boosted electricity demand for cooling purposes. This is likely to have benefited the company’s performance in the to-be-reported quarter.

Withthe economy gradually gaining momentum, PSEG may have witnessed an uptick in demand from commercial and industrial space. This is likely to have favored the to-be-reported quarter's performance.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.66 billion, suggesting growth of 12.1% from the year-ago quarter.

The various capital investment programs initiated by the company are likely to have contributed to the performance in the quarter to be reported. However, seasonal price impact of recontracting might have weighed on the third-quarter bottom line.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 92 cents per share, indicating a decline of 4.2% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for PSEG 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 -0.82%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

Here are three Utilities players you may want to consider, as these have the right combination of elements to post an earnings beat this season:

AES Corporation(AES - Free Report) has an Earnings ESP of +3.53% and a Zacks Rank #3.

Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +0.30% and a Zacks Rank #3.

Edison International(EIX - Free Report) has an Earnings ESP of +1.46% and a Zacks Rank #3.