PSEG (PEG) to Report Q3 Earnings: Here's What to Expect
Public Service Enterprise Group Incorporated PEG, or PSEG, is slated to report third-quarter 2023 results on Oct 31, before the opening bell.
The company’s earnings beat the Zacks Consensus Estimate in the last reported quarter, delivering a surprise of 14.75%. PEG boasts a four-quarter average earnings surprise of 8.40%.
Factors to Note
The company’s service territories witnessed warmer-than-normal temperatures for most of the July-September period. Such a weather pattern is expected to have boosted the electricity demand for cooling purposes in the summer. This is likely to have contributed to PEG’s third-quarter revenues. Moreover, favorable rate hikes in the prior quarters might have boosted its third-quarter revenues.
Public Service Enterprise Group Incorporated Price and EPS Surprise
Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote
However, PSEG’s service territories were impacted by tornados, along with a few flash floods in the third quarter, which might have disrupted the smooth flow of electricity to its customers. This may have negatively impacted PSEG’s third-quarter revenues, to some extent.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.46 billion, indicating an increase of 8.1% from the year-ago quarter’s level.
Extreme weather conditions, as mentioned above, might have caused infrastructural damage for the utility, increasing its operating expenses for restoration and repair. This is likely to have weighed on PEG’s bottom line in the to-be-reported quarter. Also, higher depreciation and interest expenses from increased investment might have impacted the company’s earnings performance.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 76 cents per share, indicating a decline of 11.6% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for PSEG 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, which is not the case here.
Earnings ESP: PEG’s Earnings ESP is -2.63%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: PSEG carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three Utility players that you may want to consider as these have the right combination of elements to come up with an earnings beat this reporting cycle.
Entergy ETR has an Earnings ESP of +0.36% and a Zacks Rank #3 at present. The company delivered a four-quarter average earnings surprise of 3.41%.
Entergy boasts a long-term earnings growth rate of 5.8%. The Zacks Consensus Estimate for ETR’s third-quarter earnings and sales is pegged at $2.99 per share and $4.05 billion, respectively.
NiSource NI has an Earnings ESP of +18.52% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter earnings is pegged at 14 cents per share, implying a 40% increase from that reported in the prior-year quarter.
The consensus mark for NI’s sales is pinned at $1.06 billion. The company has a four-quarter average negative earnings surprise of 5.61%.
Sempra Energy SRE has an Earnings ESP of +1.84% and a Zacks Rank #2 at present. The consensus estimate for third-quarter earnings is pinned at $1 per share, indicating a 1% increase year over year.
Sempra Energy boasts a four-quarter average earnings surprise of 9.81%. The consensus mark for third-quarter sales is pegged at $3.82 billion, indicating growth of 5.6% from that recorded in the prior-year quarter.
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