Public Service Enterprise (PEG) Q3 Earnings Beat Estimates
Zacks Investment Research | Oct 30, 2019 11:49PM ET
Public Service Enterprise Group Inc. (NYSE:PEG) , or PSEG, reported third-quarter 2019 adjusted operating earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate of 95 cents by 3.2%. The bottom line also improved 3.2% on a year-over-year basis.
Excluding one-time adjustments, the company reported quarterly earnings of 79 cents per share compared with 81 cents in third-quarter 2018.
Total Revenues
Revenue of $2,302 million in the quarter missed the Zacks Consensus Estimate of $2,551 million by 9.8%. Moreover, the figure declined 3.8% from the year-ago quarter’s $2,394 million.
Electric sales volumes rose 3% year over year to 12,124 million kilowatt-hours, while gas sales volumes grew 6% year over year to 609 million therms.
Under Electric sales, Residential sales volumes were 4,590 million kilowatt-hours, whereas Commercial and Industrial sales volumes accounted for 7,461 million kilowatt-hours. Other sales accounted for 73 million kilowatt-hours.
Total gas sales volumes witnessed 10% growth in non-firm sales volumes of gas and 6% a decline in firm sales volumes of gas.
Highlights of the Release
During the third quarter of 2019, the company reported operating income of $490 million, down from $554 million in the year-ago quarter. Total operating expenses were $1,812 million, down 1.5% from the year- ago quarter.
Interest expenses in the reported quarter were $147 million compared with $127 million in the year-ago quarter.
Segment Performance
PSE&G: Segment earnings were $344 million, up from $278 million in the prior-year quarter. PSE&G’s results in the quarter were driven by enhanced investments in transmission and distribution programs, rate relief, and changes to pension plans.
PSEG Power: Segment earnings were $53 million, down from $125 million in the prior-year quarter. The downside was led by lower realized energy prices and reduced capacity revenues.
PSEG Enterprise/Other: Segment earnings were $6 million, down from $9 million in the prior-year quarter. The year-over-year decrease in Net Income reflects higher interest expenses at the parent company.
Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise
Financial Update
Long-term debt as of Sep 30, 2019, was $15,504 million, up from the 2018-end level of $14,462 million.
PSEG generated $2,709 million in cash from operations at the end of the first nine months of 2019 compared to $2,492 million in the same period last year.
Get The News You Want
2019 Guidance
The company narrowed its 2019 guidance. Adjusted earnings are projected to be $3.20-$3.30 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.24, slightly lower than the mid-point of the company’s guided range.
PSE&G’s operating earnings are anticipated to be $1,225-$1,250 million. The company expects PSEG Power operating earnings to be $395-$420 million.
Zacks Rank
PSEG currently carries a Zacks Rank #3 (Hold). You can see Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.