Public Service Enterprise (PEG) Tops Q2 Earnings, Keeps View
Zacks Investment Research | Jul 27, 2017 11:18PM ET
Public Service Enterprise Group Inc. (NYSE:PEG) or PSEG reported second-quarter 2017 adjusted operating earnings of 62 cents per share, which exceeded the Zacks Consensus Estimate of 57 cents by 8.8%. Earnings also improved 8.8% on a year-over-year basis.
Excluding one–time adjustments, the company reported quarterly earnings of 22 cents per share compared with 37 cents in the second-quarter 2016.
Total Revenue
Revenues of $2,133 million in the quarter missed the Zacks Consensus Estimate of $2,333 million by 8.6%. However, the figure increased 12% from the year-ago figure of $1,905 million.
During the reported quarter, electric sales volume declined 0.8% to 9,583 million kilowatt-hours. But gas sales volume declined 18.1% to 692 million therms.
For electric sales, results reflected a 0.8% drop in the commercial and industrial sector, 0.6% decline in residential sector, 9.2% fall in street lighting and 2.3% drop in interdepartmental sector.
Total gas sales volume in the reported quarter declined on 24.5% drop in non-firm sales volume of gas and 9.8% decline in firm sales volume of gas.
Highlights of the Release
During the second quarter, the company incurred operating income of $374 million down from $1,174 million in the year-ago quarter. Total operating expenses were $4,351 million, up 30% from the year-ago quarter figure.
Interest expenses in the reported quarter were $189 million, in-line with the year-ago level.
Segment Performance
PSE&G: Segment earnings were $507 million, up from $441 million in the prior-year quarter. Quarterly results reflect the continuing successful execution of its growth initiatives and control of operating expenses as well as the benefits of its expanded investment program.
PSEG Power: The segment suffered a loss of $267 million against earnings of $275 million a year ago. The downside was due to the impact of incremental depreciation and other expenses of $387 million, pre-tax, associated with the decision to retire the Hudson and Mercer coal/gas-fired generating stations announced on Jun 1, 2017.
PSEG Enterprise/Other: The segment incurred net loss of $17 million as against operating earnings of $36 million in the second quarter of 2016.
Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise
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