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Public Service Enterprise (PEG) Q1 Earnings Beat Estimates

Zacks Equity Research

Public Service Enterprise Group Inc. PEG, or PSEG, reported first-quarter 2019 adjusted operating earnings of $1.08 per share, which surpassed the Zacks Consensus Estimate of 99 cents by 9.1%. Moreover, the bottom line increased 11.3% on a year-over-year basis.


Excluding one-time adjustments, the company reported quarterly earnings of $1.38 per share compared with $1.10 in first-quarter 2018.

 

Total Revenues

 

Revenues of $2,980 million in the quarter exceeded the Zacks Consensus Estimate of $2,780 million by 7.2%. Moreover, the figure improved 5.7% from the year-ago quarter’s figure of $2,818 million.
 

In the reported quarter, electric sales volumes were 9,908 million kilowatt-hours, while gas sales volumes rose 12% to 1,600 million therms.


Under Electric sales, Residential sales volumes were 3,012 million kilowatt-hours, whereas Commercial and Industrial sales volumes accounted for 6,719 million kilowatt-hours.

 

Total gas sales volumes witnessed a 58% surge in non-firm sales volumes of gas and 4% rise in firm sales volumes of gas.

 

Highlights of the Release

 

During the first quarter of 2019, the company reported operating income of $786 million, down from $832 million in the year-ago quarter. Total operating expenses were $2,194 million, up 10.5 % from the year-ago quarter.

 

Interest expenses in the reported quarter were $133 million compared with $103 million in the year-ago quarter.

 

Segment Performance

 

PSE&G: Segment earnings were $403 million, up from $319 million in the prior-year quarter. PSE&G’s results were driven by new transmission and distribution rates in effect, a reduction in operating and maintenance (O&M) expenses, and a reduction in the utility’s effective tax rate to reflect the flow back of tax reform benefits to customers.

 

PSEG Power: Segment income was $296 million compared $234 million a year ago. The upside can be attributed to increase in capacity revenues and increase in sales volumes.

 

PSEG Enterprise/Other: Segment income was $1 million compared with $5 million in the first quarter of 2018.

 

Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise

 

Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise | Public Service Enterprise Group Incorporated Quote

Financial Update

Long-term debt as of Mar 31, 2019, was $14,116 million, up from the 2018-end level of $14,462 million.

PSEG generated $1,218 million in cash from operations at the end of first-quarter 2019, down from the year-ago quarter’s $1,140 million.

2019 Guidance

 

The company has reaffirmed its 2019 guidance. Adjusted earnings are projected to be $3.15-$3.35 per share.

 

PSE&G’s operating earnings are anticipated to be $1.200-$1.230 million. The company expects PSEG Power operating earnings to be $395-$460 million.

 

Zacks Rank

 

PSEG currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

 

Recent Utility Releases

 

FirstEnergy Corporation FE, which carries a Zacks Rank #3, delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.

 

NextEra Energy, Inc. NEE, which carries a Zacks Rank #2 (Buy), reported first-quarter 2019 adjusted earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.01 by 9.4%.

 

DTE Energy Company DTE, which carries a Zacks Rank #2, reported first-quarter 2019 operating earnings per share (EPS) of $2.05, which exceeded the Zacks Consensus Estimate of $1.95 by 5.1%.

 

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