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Public Service Enterprise (PEG) Q4 Earnings Miss Estimates

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Zacks Equity Research
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Public Service Enterprise Group Inc. PEG, or PSEG, reported fourth-quarter 2020 adjusted operating earnings of 65 cents per share, which missed the Zacks Consensus Estimate of 66 cents by 1.5%. The bottom line, however, improved 1.6% on a year-over-year basis.

Including one-time adjustments, the company reported quarterly earnings of 85 cents per share compared with 86 cents in fourth-quarter 2019.

For 2020, the company reported adjusted operating earnings of $3.43 per share, which missed the Zacks Consensus Estimate of $3.44 by 0.3%. The full-year bottom line, however, improved 4.6% from a year ago.

Total Revenues

Revenues of $2,402 million in the quarter missed the Zacks Consensus Estimate of $2,696 million by 10.9%. Moreover, the figure declined 3.1% from the year-ago quarter’s $2,478 million.

For 2020, the company recorded revenues of $9.6 billion, which missed the Zacks Consensus Estimate of $9.69 billion by 0.9%. Moreover, the full-year top line declined 4.8% from the year-ago quarter’s figure of $10.08 billion.

Highlights of the Release

During the fourth quarter of 2020, the company reported an operating income of $433 million, down from $507 million in the year-ago quarter. Total operating expenses were $1,969 million, down 0.21% from the year-ago quarter.

Interest expenses in the reported quarter were $147 million compared with $152 million in the prior year’s quarter.

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 Price, Consensus and EPS Surprise

Public Service Enterprise Group Incorporated price-consensus-eps-surprise-chart | Public Service Enterprise Group Incorporated Quote

Segment Performance

PSE&G: Segment earnings were $291 million, up from $276 million in the prior-year quarter.

PSEG Power: Segment adjusted earnings were $55 million compared with $52 million in the prior-year quarter.

PSEG Enterprise/Other: Segment adjusted losses were $17 million against the adjusted earnings of $2 million in the prior-year quarter.

Financials

Cash, Cash Equivalents and Restricted Cash as of Dec 31, 2020, were $572 million compared with $176 million as of Dec 31, 2019.

Long-term debt was $16,180 million as of Dec 31, 2020, compared with $15,108 million at 2019-end.

At the end of 2020, cash from operating activities amounted to $3,102 million compared with $3,379 in the prior year.

2021 Guidance

The company issued its 2021 guidance. Adjusted earnings are projected to be $3.35-$3.55 per share. The Zacks Consensus Estimate for earnings is currently pegged at $3.38, lower than the midpoint of the company’s guided range.

PSE&G’s operating earnings are anticipated to be $1,700-$1,800 million. The company expects PSEG Power operating earnings to be $280-$370 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

Xcel Energy Inc. XEL posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. NEE reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.

CMS Energy Corp. CMS reported fourth-quarter 2020 adjusted earnings per share of 56 cents, which surpassed the Zacks Consensus Estimate of 55 cents by 1.8%.

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