Public Service Enterprise Group Inc. PEG is scheduled to release third-quarter 2020 results on Oct 30, before the opening bell.
The company delivered an earnings surprise of 33.90% in the last reported quarter. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and came in line with the same once, the average negative surprise being 10.07%.
Let’s see how things have shaped up prior to the announcement.
Factors to Consider
During the July-September 2020 quarter, majority of Public Service Enterprise’s service territory areas experienced warmer-than-normal temperature, which must have boosted electricity demand for cooling purposes. This is expected to have bolstered the company’s revenue generation in the soon-to-be-reported quarter.
Public Service Enterprise Group Incorporated Price and EPS Surprise
Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote
Moreover, revenues from ongoing capital investment programs in transmission and distribution may also have contributed to the top line of the company.
The Zacks Consensus Estimate for Public Service Enterprise’s third-quarter revenues is pegged at $2.52 billion, indicating an improvement of 9.6% from the year-ago quarter’s reported figure.
A series of tropical storms, including Hurricane Isaias affected the company’s service territories during the third quarter, resulted in widespread damage and power outages. This must have pushed up storm restoration costs for the company, which in turn might have weighed on its earnings. Moreover, unfavorable gas related bad debt expense is projected to have impacted its bottom line.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 95 cents per share, which suggests 3.1% decrease from the year-ago quarter reported figure.
Our proven model does not conclusively predict an earnings beat for Public Service Enterprise this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Public Service Enterprise carries a Zacks Rank #3.
Stocks to Consider
Here are some players from the Utilities sector that have the right combination of elements to post an earnings beat in the to-be-reported quarter.
Southern Company SO is set to release third-quarter earnings on Oct 29. It has an Earnings ESP of +0.54% and a Zacks Rank #3, presently.
Pinnacle West Capital PNW is set to release third-quarter earnings on Oct 30. It has an Earnings ESP of +0.98% and a Zacks Rank #3, currently.
A Recent Utility Release
American Electric Power AEP reported third-quarter 2020 adjusted earnings per share of $1.47, which beat the Zacks Consensus Estimate of $1.46 by 0.7%.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Southern Company The (SO) : Free Stock Analysis Report
American Electric Power Company, Inc. (AEP) : Free Stock Analysis Report
Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research