Public Service Enterprise Group Set for Q4 Earnings Reveal
With a market cap of $43.9 billion, Public Service Enterprise Group Incorporated (PEG) stands out as a diversified energy player mainly in the Northeastern and Mid-Atlantic United States. The company operates through significant subsidiaries, including PSE&G, which provides regulated electricity and natural gas services in New Jersey, and PSEG Power, focusing on electricity generation and energy trading. PSE&G is also making strides in solar generation and energy efficiency initiatives.
Based in Newark, New Jersey, PEG will report its fiscal Q4 earnings results on Monday, Feb. 24. Analysts project a profit of $0.83 per share, reflecting a 53.7% increase from $0.54 per share during the same quarter last year. The company has had a mixed performance over the past year, beating Wall Street’s earnings estimates once out of the last four quarters, while missing them three times. In the previous quarter, PEG fell short of the consensus EPS estimate by 1.1%.
Looking ahead to fiscal 2024, PEG is expected to deliver an EPS of $3.67, a 5.5% increase from $3.48 in fiscal 2023. Projections for fiscal 2025 show an anticipated EPS growth of 9.8%, reaching $4.03.
PEG’s shares have experienced a 52% surge over the past year, outperforming both the S&P 500 Index’s ($SPX) 25.5% gain and the Utilities Select Sector SPDR Fund’s (XLU) 29.1% increase year-to-date.
Despite achieving better-than-expected Q3 revenue of $2.6 billion, PEG’s shares fell 6.2% on Nov. 4 after its adjusted EPS of $0.90 missed analyst expectations. In response, the company narrowed its full-year earnings guidance to a range of $3.64 per share to $3.68 per share. The PSE&G segment, pivotal to PEG’s operations, reported a net income decline to $379 million. Rising interest expenses, likely linked to increasing interest rates, could have added to investor apprehension.
Analysts are moderately optimistic about Public Service Enterprise stock, giving it a “Moderate Buy” rating overall. Among the 20 analysts monitoring the stock, there are 10 “Strong Buys,” one “Moderate Buy,” and nine “Holds.” Currently, PEG is trading below the average analyst price target of $91.88.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please refer to the Barchart Disclosure Policy here. More news from Barchart
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