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Utility Stock Q3 Earnings Lineup for Nov 2: PEG, EIX & More

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So far, 50% of the S&P 500 members from the Utilities sector have released better-than-expected Q3 earnings. The domestic-focused matured Utility sector is one among the 12 of the total 16 Zacks sectors projected to report year-over-year earnings growth.

Factors Likely to Have Influenced Q3

During the July-September 2021 quarter, a decent recovery was observed in economic activities across the United States, thereby overcoming the challenges posed by the COVID-19 pandemic. Consequently, we witnessed a strong surge in economic activities within the commercial and industrial space (C&I), which in turn must have boosted electricity demand from these sections in the third quarter.

On the other hand, as more workers returned to offices, demand from the residential space might have been weak compared to the past couple of reported quarters. So, the overall impact of electricity demand and consumption on the Utility sector is expected to have been moderate in the ongoing reporting cycle.

Utilities' investments to strengthen transmission and distribution lines, expand infrastructure and ensure proper maintenance of the existing infrastructure that aids in providing 24x7 services to customers boost their quarterly operational performance. The continuation of near-zero interest rates has been assisting capital-intensive utility companies in getting funds at low costs to carry on with infrastructure strengthening work.

Q3 Expectations

Total Q3 earnings of Utility stocks are expected to improve 4.1% year over year on 7.1% higher revenues. For more details on quarterly releases, you can go through our latest Earnings Preview.

Utilities' Earnings in Focus

Let's take a look at some Utility stocks that are scheduled to report earnings on Nov 2.

Public Service Enterprise Group's (PEG - Free Report) earnings surpassed the Zacks Consensus Estimate in the last four quarters, with the average earnings surprise being 3.20%. The company's service territories experienced warmer-than-normal temperatures, which is likely to have benefited its performance in the soon-to-be-reported quarter.

The various capital investment programs initiated by the company are likely to have contributed to its performance in the quarter to be reported. However, the seasonal price impact of re-contracting might have weighed on the third-quarter bottom line (read more: PSEG to Report Q3 Earnings: What's in the Offing?)

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 odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

The company has an Earnings ESP of -0.82% and carries a Zacks Rank #3.

Edison International (EIX - Free Report) came up with a four-quarter average earnings surprise of 2.91%. The company's service territories mostly witnessed warmer-than-normal temperatures during the third quarter, which must have boosted its top-line performance.

Some of its service areas saw wildfire events, which is likely to have pushed the company's wildfire mitigation expenses, thereby impacting its earnings in the soon-to-be-reported quarter (read more: What's in Store for Edison International's Q3 Earnings?).

The company has an Earnings ESP of +1.49% and carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Edison International Price and EPS Surprise

Edison International Price and EPS Surprise

Edison International price-eps-surprise | Edison International Quote

WEC Energy Group (WEC - Free Report) came up with a four-quarter average earnings surprise of 8.22%. The Zacks Consensus estimate for the company's third-quarter earnings, pegged at 82 cents per share, indicates a 2.4% decline from the year-ago quarter's reported number.

The estimate for the company's quarterly revenues pegged at $1.68 billion indicates an improvement of 2% from the prior-year quarter's figure.

The company has an Earnings ESP of 0.00% and carries a Zacks Rank #2.

WEC Energy Group, Inc. Price and EPS Surprise

WEC Energy Group, Inc. Price and EPS Surprise

WEC Energy Group, Inc. price-eps-surprise | WEC Energy Group, Inc. Quote

Black Hills (BKH - Free Report) came up with a four-quarter average earnings surprise of 5.65%. The Zacks Consensus estimate for the company's third-quarter earnings, pegged at 68 cents per share, indicates a 17.2% improvement from the year-ago quarter's reported number.

The company has an Earnings ESP of 0.00% and carries a Zacks Rank #3.

Black Hills Corporation Price and EPS Surprise