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PSEG (PEG) to Report Q2 Earnings: Here's What to Expect

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Public Service Enterprise Group Incorporated (PEG - Free Report) , or PSEG, is slated to report second-quarter 2024 results on Jul 30 before market open. The company delivered a negative earnings surprise of 0.76% in the last reported quarter.

The company holds a four-quarter average earnings surprise of 7.30%.  Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play

In the second quarter of 2024, PSEG’s service territories witnessed warmer-than-normal temperatures, resulting in increased electricity demand for cooling purposes. This is expected to have contributed to the company’s second-quarter revenues.

However, unfavorable changes in generation and gas supply under the PSEG Power & Other segment may have an adverse impact on PEG’s overall top-line performance.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.06 billion, which indicates a decline of 15% from the year-ago quarter’s level.

Such a dismal sales expectation, along with lower pension income, higher operation and maintenance (O&M) costs related to gas meter inspections and high interest expenses, may have adversely impacted the company’s earnings.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 67 cents per share, which calls for a decline of 4.3% 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 odds of an earnings beat, which is not the case here, as you will see below.

Earnings ESP: PEG has an Earnings ESP of -12.27%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, PSEG carries a Zacks Rank #2. 

Stocks to Consider

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

Edison International (EIX - Free Report) is slated to report its second-quarter 2024 results on Jul 25 after market close. It has an Earnings ESP of +0.66% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for EIX’s second-quarter 2024 earnings stands at $1.02 per share, which suggests a 1% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $4.10 billion, which implies a 3.3% increase from that reported in the prior-year quarter.

CMS Energy (CMS - Free Report) is expected to report its second-quarter 2024 results on Jul 25 before market open. It has an Earnings ESP of +0.39% and carries a Zacks Rank of 2 at present.

The company’s long-term (three to five years) earnings growth is pegged at 7.6%. The Zacks Consensus Estimate for CMS Energy’s second-quarter sales is pegged at $1.69 billion, which implies an 8.8% increase from that reported in the prior-year quarter.

The Southern Company (SO - Free Report) is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +3.50% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for SO’s second-quarter earnings stands at 93 cents per share, which suggests a 17.7% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $6.26 billion, which implies a 9% increase from that reported in the prior-year quarter.

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

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