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PSEG (PEG) Q3 Earnings Beat Estimates, Ups '21 EPS View

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Public Service Enterprise Group Incorporated (PEG - Free Report) , or PSEG, reported third-quarter 2021 adjusted operating earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate of 92 cents per share by 6.5%. The bottom line improved 2.1% on a year-over-year basis.

Excluding one-time adjustments, the company incurred quarterly GAAP loss of $3.10 per share against earnings of $1.14 reported in third-quarter 2020.

Total Revenues

Revenues of $1,903 million missed the Zacks Consensus Estimate of $2,656.8 million by 28.4%. The top line declined 19.7% from the year-ago quarter’s $2,370 million.

In the quarter, electric sales volumes were 11,942 million kilowatt-hours, while gas sales volumes were 505 million therms.

Under Electric sales, Residential sales volumes were 4,681 million kilowatt-hours, while Commercial and Industrial sales volumes accounted for 7,188 million kilowatt-hours. Other sales were 73 million kilowatt-hours.

Total gas sales volumes witnessed growth of 2% in firm sales volumes and 1% decline in non-firm sales volumes of gas.

Highlights of the Release

During the third quarter of 2021, the company incurred an operating loss of $2,205 million against an operating income of $633 million in the year-ago quarter.

Total operating expenses were $4,108 million, up 136.5% from the year-ago quarter.

Segment Performance

PSE&G: Operating earnings were $389 million, up from $313 million in the prior-year quarter.

PSEG Power: Adjusted operating earnings were $119 million compared with adjusted operating earnings of $167 million in the prior-year quarter.

PSEG Enterprise/Other: Operating losses were $13 million versus earnings of $8 million in the prior-year quarter.

Financial Update

Long-term debt as of Sep 30, 2021, was $16,075 million, down from the 2020-end level of $16,180 million.

PSEG generated $1,178 million in cash from operations for the nine months ended Sep 30, 2021 compared with $2,517 million generated in the prior-year period.

2021 Guidance

The company updated its 2021 guidance. Its adjusted earnings are now projected to be $3.55-$3.70 per share, up from the prior guidance of $3.50-$3.65. The Zacks Consensus Estimate for earnings is currently pegged at $3.58 per share, lower than the mid-point of the company’s guided range.

The company raised its PSEG Power operating earnings guidance from $350-$425 million to $365-$440 million. It hiked the adjusted EBITDA guidance to $870-$970 million from $850-$950 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

American Electric Power (AEP - Free Report) reported third-quarter 2021 adjusted earnings per share of $1.43, which missed the Zacks Consensus Estimate of $1.44 by 0.7%.

NextEra Energy (NEE - Free Report) reported third-quarter 2021 adjusted earnings of 75 cents per share, which exceeded the Zacks Consensus Estimate of 72 cents by 4.2%.

DTE Energy Company (DTE - Free Report) reported third-quarter 2021 adjusted earnings of $1.72 per share, which lagged the Zacks Consensus Estimate of $1.83 by 6%.

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