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PSEG (PEG) to Report Q1 Earnings: Here's What to Expect

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Public Service Enterprise Group Incorporated (PEG - Free Report) , or PSEG, is slated to report first-quarter 2024 results on Apr 30 before market open. The company delivered an earnings surprise of 1.89% in the last reported quarter.

The company holds a four-quarter average earnings surprise of 11.21%.  Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play

PSEG’s service territories witnessed mixed temperature patterns in the first quarter. While at the onset of the January-March 2024 period, warmer-than-normal temperatures were witnessed in the company’s service areas, below-normal temperatures accompanied by snowfall prevailed in the later period. A warmer winter month of January might have hurt electricity demand from PSEG’s customers for heating purposes, whereas a cooler period witnessed later in the quarter might have contributed to its first-quarter revenues.

Adverse weather events like an atmospheric river storm, along with a few flash floods, brought widespread power outages for some of PSEG’s service areas. This might have negatively impacted its overall revenues.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.61 billion, which indicates a decline of 30.5% from the year-ago quarter’s level.

The severe weather conditions mentioned above might have caused some structural damage to the company, thereby increasing its quarterly restoration costs. This is likely to have hurt PEG’s first-quarter earnings. Moreover, lower pension income, higher depreciation and interest expenses might have an adverse impact on the company’s earnings.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.26 per share, which calls for a decline of 9.4% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for PEG this time. 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, which is not the case here, as you will see below.

Earnings ESP: PEG has an Earnings ESP of +14.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, PEG carries a Zacks Rank #4 (Sell).

Stocks to Consider

Below we have mentioned the following players from the same sector that have the right combination of elements to beat on earnings in the upcoming releases.

Center Point Energy (CNP - Free Report) is expected to report its first-quarter 2024 results on Apr 30 before market open. It has an Earnings ESP of +3.92% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CNP’s first-quarter earnings is pegged at 51 cents per share, which suggests a 2% improvement from the first-quarter 2024 reported figure. The Zacks Consensus Estimate for first-quarter sales is pegged at $2.81 billion, which indicates a 1.1% increase from that reported in the prior-year quarter.

PPL Corporation (PPL - Free Report) is set to report first-quarter earnings on May 1. It has an Earnings ESP of +0.98% and carries a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for PPL’s earnings is pegged at 51 cents per share, which calls for a 6.3% improvement from the first-quarter 2024 reported number. The Zacks Consensus Estimate for first-quarter sales is pegged at $2.48 billion, which indicates a 2.6% increase from that reported in the prior-year quarter.

Clean Energy Fuels (CLNE - Free Report) is slated to report its first-quarter 2024 results on May 9 after market close. It has an Earnings ESP of +68.75% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for CLNE’s first-quarter earnings stands at a loss of 3 cents per share, which suggests a significant improvement from the first-quarter 2024 reported loss figure of 7 cents. The Zacks Consensus Estimate for first-quarter sales is pegged at $106.6 million.

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

 

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