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Public Service Enterprise Group Q3 Earnings Miss, Revenues Rise Y/Y

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Public Service Enterprise Group Incorporated (PEG - Free Report) , or PSEG, reported third-quarter 2024 adjusted earnings of 90 cents per share, which missed the Zacks Consensus Estimate of 91 cents by 1.1%. However, earnings improved 5.9% from the prior-year reported figure.

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The company reported GAAP earnings per share (EPS) of $1.04 compared with 27 cents in the corresponding period of 2023. 

The year-over-year improvement in the bottom line can be attributed to higher operating revenues as well as operating income. 

Total Revenues

Operating revenues in the third quarter totaled $2.64 billion, which beat the Zacks Consensus Estimate of $2.48 billion by 6.6%. The top line also increased 7.6% from the year-ago figure.

Sales Volume

Electric sales volumes totaled 11,937 million kilowatt-hours, which improved 2% year over year. On the other hand, gas sales volumes declined 8% to 436 million therms.

Under electric sales, residential sales volumes totaled 4,635 million kilowatt-hours, up 3% from the prior-year figure. Its commercial and industrial sales volumes accounted for 7,231 million kilowatt-hours, registering a year-over-year improvement of 1%.

Other sales amounted to 71 million kilowatt-hours, which came in 1% lower than the year-ago recorded numbers.

Total gas sales witnessed a year-over-year decrease of 5% in firm sales volumes. Non-firm gas sales volumes dropped 11%.

Highlights of the Release

The operating income totaled $641 million in the third quarter compared with $551 million in the year-ago period. This indicated a year-over-year improvement of 16.3%.

Total operating expenses were $2.00 billion, up 5% from the year-ago reported actuals.

Interest expenses amounted to $227 million, which increased 22.7% year over year.

Segmental Performance

PSE&G: This segment’s net income totaled $379 million, down from $401 million recorded in the third quarter of 2023.

PSEG Power & Other: Adjusted operating income for this unit amounted to $69 million compared with $22 million in the prior-year quarter.

Financial Update

The long-term debt (including the current portion of the long-term debt) as of Sept. 30, 2024 was $21.36 billion compared with $19.28 billion as of Dec. 31, 2023.

PSEG generated $1.77 billion worth of cash from operations during the first nine months of 2024 compared with $3.10 billion in the prior-year period.

2024 Guidance

PEG narrowed its full-year guidance. It currently expects adjusted earnings to be in the range of $3.64-$3.68 per share compared with the earlier guidance of $3.60-$3.70. The Zacks Consensus Estimate for earnings is currently pegged at $3.67 per share, just above the midpoint of the company’s newly guided range.

Zacks Rank

PEG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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