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Public Service Enterprise Group Inc. PEG is scheduled to release fourth-quarter 2024 earnings on Feb. 25, before market open.
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This utility company delivered a negative earnings surprise of 1.10% in the last reported quarter. The company’s trailing four-quarter negative earnings surprise is 0.38%, on average.
Let’s discuss the factors that are likely to affect the upcoming quarterly results.
Factors to Consider Ahead of PEG’s Results
Public Service Enterprise’s service territories witnessed above-normal weather patterns for the majority of the fourth quarter, though some of its territories witnessed below-normal weather patterns in December. The warmer-than-normal weather condition is likely to have hurt electricity demand from PEG’s customers for heating purposes this winter, while the below-normal temperature is expected to have boosted the demand to some extent. So, the overall impact of weather is expected to have been majorly unfavorable to the company’s top-line performance.
Nevertheless, load growth in its service areas, driven by data center expansion and favorable rate outcomes witnessed in prior quarters, is likely to have added an impetus to the company’s revenue growth.
Profitable returns from its prior capital investment in infrastructural upgrades and growth in rate base from higher regulated investments are likely to have boosted PEG’s overall quarterly earnings.
However, higher interest expenses, along with increasing operating and maintenance expenses on account of higher cyber and IT spending, are likely to have hurt the company’s bottom-line performance to some extent.
Public Service Enterprise Group Incorporated Price and EPS Surprise
Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote
PEG’s Q4 Expectation
The Zacks Consensus Estimate for PEG’s sales is pegged at $2.31 billion, which indicates a year-over-year decline of 11.2%.
The consensus estimate for earnings is pegged at 83 cents per share, which indicates year-over-year growth of 53.7%.
What Our Model Predicts for PEG
Our proven model does not conclusively predict an earnings beat for PEG this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is -1.01%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of Zacks Rank #1 stocks here.