Public Service Enterprise (PEG) Earnings Preview For Q2
Zacks Investment Research | Jul 25, 2019 10:03PM ET
Public Service Enterprise Group Inc. (NYSE:PEG) is scheduled to report second-quarter 2019 results on Jul 30, before the opening bell.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 9.09%. The bottom line also exceeded the consensus mark in three of the trailing four quarters, the average positive surprise being 4.35%.
Let’s see how things are shaping up for this announcement.
Factors at Play
A majority of the company’s service territories experienced warmer-than-normal temperature during most part of the second quarter. Additionally, its service territories witnessed significant wet weather conditions throughout the quarter. These are likely to result in higher electricity demand, which, in turn, may have favorably impacted the company’s top line in the second quarter.
In line with this, the Zacks Consensus Estimate for Public Service Enterprise’s second-quarter revenues is pegged at $2.23 billion, suggesting a rise of 10.8% from the figure reported in the year-ago quarter.
Last year, the federal corporate tax rate was reduced, resulting in a decrease in the company's effective income tax rates. Public Service Enterprise has started passing on these benefits in the form of tax-reform savings to its customers, which, in turn, has been bringing down their electricity bills. While such flow back of deferred taxes might boost the company’s customer base, lower bills generating from the same tend to impact its bottom line in the to-be-reported quarter.
In line with this, the Zacks Consensus Estimate for the company’s second-quarter earnings stands at 62 cents, indicating a 3.1% decline from the year-ago quarter’s reported figure.
Earnings Whisper
Our proven model does not conclusively show that Public Service Enterprise is likely to beat on earnings in the second quarter. This is because a stock needs to have both — a positive Original post
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