PSEG (PEG) Set to Report Q2 Earnings: What's in the Cards?
Public Service Enterprise Group Incorporated PEG, or PSEG, is slated to report its second-quarter 2023 results on Aug 1 before the opening bell.
Its bottom line outpaced the Zacks Consensus Estimate in the last reported quarter, with a 14.88% surprise. The stock boasts a four-quarter average earnings surprise of 4.33%.
Factors to Note
In the second quarter of 2023, PSEG’s service territories witnessed warmer-than-normal temperatures resulting in increased electricity demand for cooling purposes. This is expected to have contributed to the company’s second-quarter revenues. Moreover, favorable rate hikes in the prior quarters may have boosted its second-quarter revenues.
However, its service territories may have been impacted by tornados accompanied by gusty winds in the second quarter, which is likely to have disrupted the smooth flow of electricity to its customers. This may have negatively impacted PSEG’s second-quarter revenues.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.03 billion, suggesting a decrease of 2.3% from the year-ago quarter.
Extreme weather conditions, as mentioned above, may have caused infrastructural damage for the utility, increasing its operating expenses for restoration and repair. This is likely to have weighed on its bottom line in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 62 cents per share, indicating a decline of 3.1% from the prior-year reported figure.
Public Service Enterprise Group Incorporated Price and EPS Surprise
Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for PSEG this time. 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 the case here.
Earnings ESP: PEG’s Earnings ESP is +1.94%. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three more utility players you may want to consider as these also have the right combination of elements to post an earnings beat this season:
Exelon Corporation EXC has an Earnings ESP of +0.12% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter sales, pegged at $4.40 billion, implies growth of 3.8% from the prior-year quarter’s tally.
EXC has a four-quarter average earnings surprise of 1.47%. The Zacks Consensus Estimate for Exelon’s second-quarter earnings is pegged at 41 cents per share.
Consolidated Edison ED has an Earnings ESP of +1.40% and a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter earnings is pegged at 57 cents per share.
The Zacks Consensus Estimate for ED’s second-quarter sales is pegged at $3.28 billion. This suggests a 3.9% decline from the prior-year reported figure.
Ameren Corporation AEE has an Earnings ESP of +2.05% and a Zacks Rank #3. The Zacks Consensus Estimate for Ameren’s second-quarter revenues is pegged at $1.73 billion, implying growth of 0.3% from the year-ago quarter.
The Zacks Consensus Estimate for AEE’s second-quarter earnings is pegged at 75 cents per share. The company’s four-quarter average earnings surprise is 4.70%.
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Exelon Corporation (EXC) : Free Stock Analysis Report
Ameren Corporation (AEE) : Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
