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PSEG (PEG) Q1 Earnings Beat Estimates, Revenues Fall Y/Y

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Public Service Enterprise Group Incorporated (PEG - Free Report) or PSEG reported first-quarter 2022 adjusted operating earnings of $1.33 per share, which surpassed the Zacks Consensus Estimate of $1.11 by 19.8%.

The company reported a quarterly GAAP loss of nearly a penny per share in the first quarter of 2022, against the earnings of $1.28 generated in the first quarter of 2021.

Total Revenues

Operating revenues came in at $2,313 millionin the first quarter, which missed the Zacks Consensus Estimate of $2,539.3 million by 8.9%. The top line also decreased by 19.9% from the year-ago quarter’s $2,889 million.

In the quarter, electric sales volumes were 9,812 million kilowatt-hours, while gas sales volumes were 1,394 million therms.

Under electric sales, Residential sales volumes were 3,201 million kilowatt-hours, down 2% from the prior-year quarter figure. ItsCommercial and Industrial sales volumes accounted for 6,511 million kilowatt-hours, up 4% from the same period last year. Other sales were 100 million kilowatt-hours, up 1% from the year-ago quarter figure.

Total gas sales volumes witnessed an increaseof2% in firm sales volumes and a 43% decline in the non-firm sales volumes of gas from the year-ago quarter figure.

Highlights of the Release

In the first quarter of 2022, the operating loss came in at $52 million against the operating income of $741 million in the year-ago quarter.

Total operating expenses were $2,365 million, up 10.1% from the year-ago quarter, mainly due to the higher energy cost and higher depreciation expenses.

Segment Performance

PSE&G:Operating earnings were $509 million, up from $477 million in the prior-year quarter.

Carbon-Free Infrastructure/Other: Operating earnings were $163 million compared with $173 million in the prior-year quarter.

Financial Update

The long-term debt (includes the current portion of the long-term debt) as of Mar 31, 2022 was $17,668 million, up from the 2021-end level of $15,919 million.

PSEG generated $472 million in cash from operations in the first quarter of 2022 compared with the $1,027 million generated in the prior-year period.

2022 Guidance

The company reaffirmed its 2022 guidance. PEG continues to expect its adjusted operating earnings in the range of $1,680-$1,780 million and adjusted earnings per share (EPS) in the range of $3.35-$3.55. The Zacks Consensus Estimate for earnings is currently pegged at $3.51 per share, higher than the midpoint of the company’s guided range.

The company also expects its PSE&G adjusted operating earnings in the range of $1,510-$1,560 million for 2022. It anticipates Carbon-Free, Infrastructure & Other adjusted operating earnings in the range of $170-$220 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.

Utility Releases

Entergy Corporation (ETR - Free Report) reported first-quarter 2022 adjusted earnings of $1.32 per share, which missed the Zacks Consensus Estimate of $1.38 by 4.3%. The reported figure also declined by 10.2% from $1.47 per share in the year-ago quarter.

Entergy’s first-quarter revenues of $2.88 billion exceeded the Zacks Consensus Estimate of $2.75 billion by 4.8%. Further, ETR’s revenues increased 1.2% from $2.84 billion in the year-ago quarter.

DTE Energy Company (DTE - Free Report) reported first-quarter 2022 operating EPS of $2.31, which surpassed the Zacks Consensus Estimate of $2.06 by 12.1%. The bottom line also increased 15.5% from the year-ago quarter’s $2 per share.

DTE Energy reaffirmed its 2022 operating EPS guidance in the range of $5.80-$6.00. The Zacks Consensus Estimate for DTE’s 2022 earnings, pegged at $5.96, lies near the higher end of the guided range.

PG&E Corporation (PCG - Free Report) reported adjusted EPS of 30 cents in the first quarter of 2022, which beat the Zacks Consensus Estimate of 25 cents by 20%. The bottom line also increased 30.4% from the year-ago quarter’s reported figure.

PG&E Corp’s total revenues of $5,798 million rose 22.9% from the year-ago quarter’s $4,716 million. PCG’s revenues also exceeded the Zacks Consensus Estimate of $4,974.7 million by 16.5%.