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PSEG (PEG) Up 0.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for PSEG (PEG - Free Report) . Shares have added about 0.9% 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 the most recent earnings report in order to get a better handle on the important catalysts.
PSEG Q2 Earnings Miss Estimates, Revenues Rise Y/Y
Public Service Enterprise Group, or PSEG, reported second-quarter 2024 adjusted earnings of 63 cents per share, which missed the Zacks Consensus Estimate of 64 cents by 1.6%. Earnings also declined 10% from the prior-year quarter’s reported figure.
The company reported GAAP earnings per share (EPS) of 87 cents per share compared with $1.18 in the corresponding period of 2023.
The year-over-year deterioration in the bottom line can be attributed to higher operation and maintenance costs, as well as higher depreciation and interest expenses.
Total Revenues
Operating revenues in the second quarter totaled $2.42 billion, which beat the Zacks Consensus Estimate of $2.4 billion by 18.7%. The top line also increased 0.1% from the year-ago quarter’s figure.
Sales Volume
Electric sales volumes totaled 9,817 million kilowatt-hours, which improved 12% year over year. On the other hand, gas sales volumes improved 4% to 550 million therms.
Under electric sales, residential sales volumes totaled 3,369 million kilowatt-hours, up 20% from the prior-year quarter’s figure. Its commercial and industrial sales volumes accounted for 6,377 million kilowatt-hours, registering a year-over-year improvement of 8%.
Other sales amounted to 71 million kilowatt-hours, which came in flat compared to the year-ago quarter’s comparable level.
Total gas sales witnessed a year-over-year increase of 7% in firm sales volumes, while non-firm gas sales volumes dropped 1%.
Highlights of the Release
The operating income totaled $582 million in the second quarter compared with $794 million in the year-ago period. This indicated a year-over-year decline of 26.7%.
Total operating expenses were $1.84 billion, up 13.2% from the year-ago quarter’s reported actuals.
Interest expenses amounted to $218 million in the second quarter of 2024, which increased 17.8% year over year.
Segmental Performance
PSE&G: This segment’s net income totaled $302 million, down from $336 million recorded in the second quarter of 2023.
PSEG Power & Other: Adjusted operating income for this unit amounted to $11 million compared with $10 million in the prior-year quarter.
Financial Update
The long-term debt (including the current portion of the long-term debt) as of Jun 30, 2024 was $20.52 billion compared with $19.28 billion as of Dec 31, 2023.
PSEG generated $1.14 billion worth of cash from operations during the first six months of 2024 compared with $2.41 billion in the prior-year period.
2024 Guidance
PSEG reaffirmed its full-year guidance. PEG continues to expect adjusted earnings in the range of $3.60-$3.70 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.68 per share, higher than the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, PSEG has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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.
Performance of an Industry Player
PSEG is part of the Zacks Utility - Electric Power industry. Over the past month, Avangrid (AGR - Free Report) , a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended June 2024 more than a month ago.
Avangrid reported revenues of $1.92 billion in the last reported quarter, representing a year-over-year change of +21.2%. EPS of $0.49 for the same period compares with $0.21 a year ago.
Avangrid is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of +22.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +32%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Avangrid. Also, the stock has a VGM Score of C.
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PSEG (PEG) Up 0.9% 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 0.9% 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 the most recent earnings report in order to get a better handle on the important catalysts.
PSEG Q2 Earnings Miss Estimates, Revenues Rise Y/Y
Public Service Enterprise Group, or PSEG, reported second-quarter 2024 adjusted earnings of 63 cents per share, which missed the Zacks Consensus Estimate of 64 cents by 1.6%. Earnings also declined 10% from the prior-year quarter’s reported figure.
The company reported GAAP earnings per share (EPS) of 87 cents per share compared with $1.18 in the corresponding period of 2023.
The year-over-year deterioration in the bottom line can be attributed to higher operation and maintenance costs, as well as higher depreciation and interest expenses.
Total Revenues
Operating revenues in the second quarter totaled $2.42 billion, which beat the Zacks Consensus Estimate of $2.4 billion by 18.7%. The top line also increased 0.1% from the year-ago quarter’s figure.
Sales Volume
Electric sales volumes totaled 9,817 million kilowatt-hours, which improved 12% year over year. On the other hand, gas sales volumes improved 4% to 550 million therms.
Under electric sales, residential sales volumes totaled 3,369 million kilowatt-hours, up 20% from the prior-year quarter’s figure. Its commercial and industrial sales volumes accounted for 6,377 million kilowatt-hours, registering a year-over-year improvement of 8%.
Other sales amounted to 71 million kilowatt-hours, which came in flat compared to the year-ago quarter’s comparable level.
Total gas sales witnessed a year-over-year increase of 7% in firm sales volumes, while non-firm gas sales volumes dropped 1%.
Highlights of the Release
The operating income totaled $582 million in the second quarter compared with $794 million in the year-ago period. This indicated a year-over-year decline of 26.7%.
Total operating expenses were $1.84 billion, up 13.2% from the year-ago quarter’s reported actuals.
Interest expenses amounted to $218 million in the second quarter of 2024, which increased 17.8% year over year.
Segmental Performance
PSE&G: This segment’s net income totaled $302 million, down from $336 million recorded in the second quarter of 2023.
PSEG Power & Other: Adjusted operating income for this unit amounted to $11 million compared with $10 million in the prior-year quarter.
Financial Update
The long-term debt (including the current portion of the long-term debt) as of Jun 30, 2024 was $20.52 billion compared with $19.28 billion as of Dec 31, 2023.
PSEG generated $1.14 billion worth of cash from operations during the first six months of 2024 compared with $2.41 billion in the prior-year period.
2024 Guidance
PSEG reaffirmed its full-year guidance. PEG continues to expect adjusted earnings in the range of $3.60-$3.70 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.68 per share, higher than the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, PSEG has a poor Growth Score of F, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. 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.
Performance of an Industry Player
PSEG is part of the Zacks Utility - Electric Power industry. Over the past month, Avangrid (AGR - Free Report) , a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended June 2024 more than a month ago.
Avangrid reported revenues of $1.92 billion in the last reported quarter, representing a year-over-year change of +21.2%. EPS of $0.49 for the same period compares with $0.21 a year ago.
Avangrid is expected to post earnings of $0.33 per share for the current quarter, representing a year-over-year change of +22.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +32%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Avangrid. Also, the stock has a VGM Score of C.