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Public Service (PEG)Tops Q3 Earnings, Lowers '16 EPS View
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Public Service Enterprise Group Inc. (PEG - Free Report) , or PSEG, reported third-quarter 2016 adjusted operating earnings of 88 cents per share, beating the Zacks Consensus Estimate by 8.6%. Earnings also improved 10% on a year-over-year basis, reflecting the benefits from the company’s expanded investment program.
Excluding the one–time adjustments, the company’s reported quarterly earnings were 64 cents per share, down 26.4% from 87 cents a year ago.
Total Revenue
Revenues of $2,450 million in the reported quarter missed the Zacks Consensus Estimate of $2,543 million by 3.7%, and fell 8.8% from the year-ago figure of $2,688 million.
During the reported quarter, electric sales volume increased 3.6% to 12,792 million kilowatt-hours, while gas sales volume decreased 0.5% to 861 million therms.
For electric sales, results reflected a 7.2% volume increase in the residential sector, a 1.5% rise in the commercial and industrial sector, a 1.3% growth in street lighting and 4.8% growth interdepartmentally.
Total gas sales volume in the reported quarter decreased due to 7.5% drop in firm sales volume of gas. However, a 1.5% growth was observed in non-firm sales volume of gas.
Operating income tanked 29% year over year to $577 million in the quarter. Total operating expenses were $1,873 million, almost in line with the year ago quarter’s figure.
Interest expenses in the reported quarter were $99 million, up 3.1% from the year-ago level.
Segment Performance
PSE&G: Segment earnings were $255 million, up from $222 million in the prior-year period. Quarterly results reflect growth from expanded investment in electric and gas transmission and distribution facilities.
PSEG Power: The segment generated earnings of $139 million versus $206 million a year ago. The downside was due to the impact of the known decline in average prices on energy hedges and a decline in operating costs.
PSEG Enterprise/Other: The segment generated operating loss of $67 million, compared to operating earnings of $11 million in the third quarter of 2015.
Financial Update
As of Sep 30, 2016, cash and cash equivalents were $450 million, compared with $271 million as of Sep 30, 2015.
Long-term debt as of Sep 30, 2016 was $10,697 million, up from the 2015-end level of $9,568 million.
Public Service Enterprise Group generated $2,761 million in cash from operations in the first nine months of 2016, down 14.4% year over year.
2016 Guidance
The company lowered the higher limit of its earnings guidance. The company currently expects its earnings to be in the range of $2.80–$2.95, compared to the earlier earnings guidance range of $2.80–$3.00 per share.
PSE&G’s operating earnings are still expected in the range of $900–$935 million.
The company also continues to expect PSEG Power operating earnings in the $460–$525 million band.
PSEG Enterprise/Other’s operating earnings are still estimated to be $65 million.
Other Utility Releases
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.
Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.
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Public Service (PEG)Tops Q3 Earnings, Lowers '16 EPS View
Public Service Enterprise Group Inc. (PEG - Free Report) , or PSEG, reported third-quarter 2016 adjusted operating earnings of 88 cents per share, beating the Zacks Consensus Estimate by 8.6%. Earnings also improved 10% on a year-over-year basis, reflecting the benefits from the company’s expanded investment program.
Excluding the one–time adjustments, the company’s reported quarterly earnings were 64 cents per share, down 26.4% from 87 cents a year ago.
Total Revenue
Revenues of $2,450 million in the reported quarter missed the Zacks Consensus Estimate of $2,543 million by 3.7%, and fell 8.8% from the year-ago figure of $2,688 million.
During the reported quarter, electric sales volume increased 3.6% to 12,792 million kilowatt-hours, while gas sales volume decreased 0.5% to 861 million therms.
For electric sales, results reflected a 7.2% volume increase in the residential sector, a 1.5% rise in the commercial and industrial sector, a 1.3% growth in street lighting and 4.8% growth interdepartmentally.
Total gas sales volume in the reported quarter decreased due to 7.5% drop in firm sales volume of gas. However, a 1.5% growth was observed in non-firm sales volume of gas.
PUBLIC SV ENTRP Price, Consensus and EPS Surprise
PUBLIC SV ENTRP Price, Consensus and EPS Surprise | PUBLIC SV ENTRP Quote
Highlights of the Release
Operating income tanked 29% year over year to $577 million in the quarter. Total operating expenses were $1,873 million, almost in line with the year ago quarter’s figure.
Interest expenses in the reported quarter were $99 million, up 3.1% from the year-ago level.
Segment Performance
PSE&G: Segment earnings were $255 million, up from $222 million in the prior-year period. Quarterly results reflect growth from expanded investment in electric and gas transmission and distribution facilities.
PSEG Power: The segment generated earnings of $139 million versus $206 million a year ago. The downside was due to the impact of the known decline in average prices on energy hedges and a decline in operating costs.
PSEG Enterprise/Other: The segment generated operating loss of $67 million, compared to operating earnings of $11 million in the third quarter of 2015.
Financial Update
As of Sep 30, 2016, cash and cash equivalents were $450 million, compared with $271 million as of Sep 30, 2015.
Long-term debt as of Sep 30, 2016 was $10,697 million, up from the 2015-end level of $9,568 million.
Public Service Enterprise Group generated $2,761 million in cash from operations in the first nine months of 2016, down 14.4% year over year.
2016 Guidance
The company lowered the higher limit of its earnings guidance. The company currently expects its earnings to be in the range of $2.80–$2.95, compared to the earlier earnings guidance range of $2.80–$3.00 per share.
PSE&G’s operating earnings are still expected in the range of $900–$935 million.
The company also continues to expect PSEG Power operating earnings in the $460–$525 million band.
PSEG Enterprise/Other’s operating earnings are still estimated to be $65 million.
Other Utility Releases
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.
Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.
Zacks Rank
Public Service Enterprise Group currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>