It has been about a month since the last earnings report for PSEG (PEG Quick QuotePEG - Free Report) . Shares have lost about 1.5% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is PSEG due for a breakout? 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.

PSEG Q3 Earnings Beat Estimates, Ups '21 EPS View

Public Service Enterprise Group Incorporated 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.

How Have Estimates Been Moving Since Then?

Estimates revision followed a flat path over the past two months.

VGM Scores

Currently, PSEG has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

PSEG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.