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Public Service Enterprise Set to Report Q4 Earnings: What to Expect?

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Public Service Enterprise Group Inc. (PEG - Free Report) is scheduled to release fourth-quarter 2024 earnings on Feb. 25, before market open.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

This utility company delivered a negative earnings surprise of 1.10% in the last reported quarter. The company’s trailing four-quarter negative earnings surprise is 0.38%, on average.

Let’s discuss the factors that are likely to affect the upcoming quarterly results.

Factors to Consider Ahead of PEG’s Results

Public Service Enterprise’s service territories witnessed above-normal weather patterns for the majority of the fourth quarter, though some of its territories witnessed below-normal weather patterns in December. The warmer-than-normal weather condition is likely to have hurt electricity demand from PEG’s customers for heating purposes this winter, while the below-normal temperature is expected to have boosted the demand to some extent. So, the overall impact of weather is expected to have been majorly unfavorable to the company’s top-line performance.

Nevertheless, load growth in its service areas, driven by data center expansion and favorable rate outcomes witnessed in prior quarters, is likely to have added an impetus to the company’s revenue growth.

Profitable returns from its prior capital investment in infrastructural upgrades and growth in rate base from higher regulated investments are likely to have boosted PEG’s overall quarterly earnings.

However, higher interest expenses, along with increasing operating and maintenance expenses on account of higher cyber and IT spending, are likely to have hurt the company’s bottom-line performance to some extent.

PEG’s Q4 Expectation

The Zacks Consensus Estimate for PEG’s sales is pegged at $2.31 billion, which indicates a year-over-year decline of 11.2%.

The consensus estimate for earnings is pegged at 83 cents per share, which indicates year-over-year growth of 53.7%.

What Our Model Predicts for PEG

Our proven model does not conclusively predict an earnings beat for PEG 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: The company’s Earnings ESP is -1.01%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of Zacks Rank #1 stocks here.

Recent Utility Releases

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2024 adjusted earnings of 53 cents per share, which beat the Zacks Consensus Estimate of 51 cents by 3.9%. The company reported operating revenues of $5.38 billion, which lagged the consensus estimate of $6.49 billion by 17%.

WEC Energy Group (WEC - Free Report) reported fourth-quarter 2024 earnings of $1.43 per share, which missed the Zacks Consensus Estimate of $1.44 by 0.7%. The company reported operating revenues of $2.28 billion, which missed the consensus estimate of $2.6 billion by 12.1%.

National Fuel Gas Company (NFG - Free Report) reported first-quarter fiscal 2025 adjusted operating earnings of $1.66 per share, which beat the Zacks Consensus Estimate of $1.57 by 5.7%. The company reported sales of $549.5 million, which missed the consensus estimate of $594 million by 7.5%.

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