Public Service Enterprise Group Faces Market Struggles Despite Earnings Report
With a market cap of $38.7 billion, Public Service Enterprise Group Incorporated (PEG) operates as a diversified energy company, predominantly servicing the Northeastern and Mid-Atlantic regions of the United States. The firm’s key subsidiaries, PSE&G and PSEG Power, focus on electric and gas utilities, nuclear generation, and energy trading.
Recent Market Performance
Over the past 52 weeks, shares of the Newark, New Jersey-based company have underperformed the broader market. PEG has returned 5.6%, while the S&P 500 Index ($SPX) has gained 12.7%. Additionally, PEG’s stock has declined by 8.2% year-to-date, contrasting with the SPX’s slight increase.
Industry Comparison
PSEG has also fallen short compared to the Utilities Select Sector SPDR Fund’s (XLU) 11.8% return over the last year and the 5.2% gain year-to-date.
Quarterly Financial Results
Despite announcing better-than-expected Q1 2025 revenue of $3.22 billion, PEG shares dropped 2.1% on April 30. The adjusted earnings per share (EPS) of $1.43 missed the consensus estimate, overshadowing a 9.2% increase year-over-year. Operating expenses surged by 16.9% to $2.4 billion, while interest expenses climbed 17.6% to $241 million. Nevertheless, PEG has reaffirmed its 2025 EPS guidance of $3.94 – $4.06, aligning with the consensus expectations.
Yearly Expectations and Analyst Ratings
For the fiscal year ending in December 2025, analysts predict PEG’s EPS to grow nearly 9% year-over-year to $4.01. The company’s earnings surprise history offers a mixed view, achieving consensus estimates in just one of the last four quarters while missing three times.
Among the 19 analysts covering the stock, the consensus rating stands at “Moderate Buy,” consisting of eight “Strong Buy” ratings and 11 “Holds.”
Future Outlook
This recent configuration appears less positive than three months prior, when there were nine “Strong Buy” ratings for the stock. Analyst David Arcaro from Morgan Stanley reaffirmed a “Buy” rating on April 23, setting a price target of $102, which is the highest on Wall Street. This target suggests a potential upside of 31.5%. Currently, PEG is trading below the average price target of $88.66.
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 further information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.
