We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PSEG (PEG) Up 4.9% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for PSEG (PEG - Free Report) . Shares have added about 4.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PSEG due for a pullback? 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 catalysts.
Public Service Enterprise Posts In-Line Q1 Earnings
Public Service Enterprise or PSEG reported first-quarter 2020 adjusted operating earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 4.6% on a year-over-year basis.
Including one-time adjustments, the company reported quarterly earnings of 88 cents per share compared with $1.38 in first-quarter 2019.
Total Revenues
Revenues of $2,781 million missed the Zacks Consensus Estimate of $3,237 million by 14.1%. The top-line figure also declined 6.7% from the year-ago quarter’s $2,980 million.
Highlights of the Release
For the first quarter of 2020, the company reported operating income of $797 million, higher than $786 million in the year-ago quarter. Total operating expenses were $1,984 million, down 9.6% from the year-ago quarter.
Interest expenses in the reported quarter were $153 million, compared with $133 million in the first quarter of 2019.
Segment Performance
PSE&G: Segment earnings were $440 million, up from $403 million in the prior-year quarter. PSE&G’s results in the quarter were driven by revenue growth from ongoing capital investment programs as well as growth in transmission rate base.
PSEG Power: Segment adjusted earnings were $85 million compared with $143 million in the prior-year quarter. The downside was due to extremely mild winter weather conditions that caused lower generation output.
PSEG Enterprise/Other: Segment losswas $5 million against earnings of $1 million in the prior-year quarter. The year-over-year downside can be attributed to higher interest and tax expenses.
2020 Guidance
The company reiterated its 2020 guidance. Adjusted earnings are still projected to be $3.30-$3.50 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.31, lower than the mid-point of the company’s guided range.
PSE&G’s operating earnings are still anticipated to be $1,310-$1,370 million. The company expects PSEG Power operating earnings to be in the range of $345-$435 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, PSEG has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PSEG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PSEG (PEG) Up 4.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for PSEG (PEG - Free Report) . Shares have added about 4.9% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PSEG due for a pullback? 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 catalysts.
Public Service Enterprise Posts In-Line Q1 Earnings
Public Service Enterprise or PSEG reported first-quarter 2020 adjusted operating earnings of $1.03 per share, which came in line with the Zacks Consensus Estimate. However, the bottom line declined 4.6% on a year-over-year basis.
Including one-time adjustments, the company reported quarterly earnings of 88 cents per share compared with $1.38 in first-quarter 2019.
Total Revenues
Revenues of $2,781 million missed the Zacks Consensus Estimate of $3,237 million by 14.1%. The top-line figure also declined 6.7% from the year-ago quarter’s $2,980 million.
Highlights of the Release
For the first quarter of 2020, the company reported operating income of $797 million, higher than $786 million in the year-ago quarter. Total operating expenses were $1,984 million, down 9.6% from the year-ago quarter.
Interest expenses in the reported quarter were $153 million, compared with $133 million in the first quarter of 2019.
Segment Performance
PSE&G: Segment earnings were $440 million, up from $403 million in the prior-year quarter. PSE&G’s results in the quarter were driven by revenue growth from ongoing capital investment programs as well as growth in transmission rate base.
PSEG Power: Segment adjusted earnings were $85 million compared with $143 million in the prior-year quarter. The downside was due to extremely mild winter weather conditions that caused lower generation output.
PSEG Enterprise/Other: Segment losswas $5 million against earnings of $1 million in the prior-year quarter. The year-over-year downside can be attributed to higher interest and tax expenses.
2020 Guidance
The company reiterated its 2020 guidance. Adjusted earnings are still projected to be $3.30-$3.50 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.31, lower than the mid-point of the company’s guided range.
PSE&G’s operating earnings are still anticipated to be $1,310-$1,370 million. The company expects PSEG Power operating earnings to be in the range of $345-$435 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, PSEG has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PSEG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.