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PSEG (PEG) Set to Report Q4 Earnings: What's in the Cards?

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Public Service Enterprise Group Incorporated (PEG - Free Report) , or PSEG, is slated to report its fourth-quarter and full-year 2022 results on Feb 21 before the opening bell. 

Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 5.53%.  

Factors to Note

In the fourth quarter of 2022, PSEG’s service territories witnessed warmer-than-normal temperatures. Such a weather pattern is expected to have contributed to the company’s fourth-quarter revenues, buoyed by the increased electricity demand for cooling purposes.

Additionally, some parts of its service territories experienced significant precipitation levels, resulting in wet weather conditions. Moreover, rate-based growth from regulated investments may have positively contributed to its fourth-quarter revenues.

However, its service territories were impacted by immense flooding conditions in the fourth quarter, which is likely to have disrupted the smooth flow of electricity to its customers. This may have negatively impacted the company’s fourth-quarter revenues.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.18 billion, suggesting a decrease of 28.7% from the year-ago quarter.

Immense flooding conditions, as mentioned above, may have caused infrastructural damage for the utility, increasing the company’s operating expenses for restoration and repairing. This is likely to have weighed on its bottom line in the to-be-reported quarter. However, lower operating & maintenance expenses and lower depreciation and interest expenses related to the Fossil divestiture may have benefited the bottom line in the fourth quarter.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 63 cents per share, indicating a decline of 8.7% 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. 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. However, that is not the case here.

Earnings ESP: PEG’s Earnings ESP is +2.38%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PSEG carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

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

DTE Energy Company (DTE - Free Report) has an Earnings ESP of +1.79% and a Zacks Rank #3. The Zacks Consensus Estimate for DTE Energy’s fourth-quarter revenues is pegged at $4.07 billion, suggesting a decline of 12.4% from the year-ago quarter.

The Zacks Consensus Estimate for DTE’s fourth-quarter earnings is pegged at $1.22 per share, indicating growth of 16.2% from the prior-year reported figure.

Edison International (EIX - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #3. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $1.08 per share, implies a decline of 6.9% from the prior-year quarter’s tally.

EIX has a four-quarter earnings surprise of 14.88%. The Zacks Consensus Estimate for Edison’s fourth-quarter sales suggests a growth rate of 8.9% from the prior-year quarter’s tally.

NiSource (NI - Free Report) has an Earnings ESP of +1.03% and a Zacks Rank #2. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at 49 cents per share, suggests growth of 25.6% from the prior-year quarter’s tally.

The Zacks Consensus Estimate for NI’s fourth-quarter sales implies a growth rate of 10.4% from the prior-year quarter figure. NiSource has a four-quarter earnings surprise of 0.33%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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