Public Service Enterprise Group Inc.
), a regulated electric and natural gas distributor, is expected to
release its second quarter 2012 results tomorrow before the bell.
The Zacks Consensus Estimate for the second quarter of 2012 is 45
cents per share (year-over-year decrease of 28.6%) on revenues of
$2,393 million (year-over-year decrease of 3.08%).
First-quarter 2012, a Synopsis
Public Service Enterprise's first-quarter 2012 operating earnings
per share ("EPS") were 85 cents, far above the Zacks Consensus
Estimate of 67 cents but in line with the year-ago figure.
In the first quarter of 2012, GAAP EPS was 97 cents, up from 91
cents per share in the year-ago period. The variance between GAAP
and operating earnings was due to a 1 cent gain on each - nuclear
decommissioning trust (NDT) Fund Related Activity and Lease Related
Activity - as well as a mark-to market gain of 10 cents.
Revenue in the first quarter of 2012 was $2.88 billion, down from
the year-ago figure of $3.35 billion. The top line was also lower
than the Zacks Consensus Estimate by $355 million. Residential
sales were 2,990 million Kwh while Commercial & Industrial
sales were 6,751 million Kwh in the last quarter. Total sales were
9,834 million Kwh.
Total operating expenses in the quarter under review were $2.09
billion, down 16.3% year over year. Public Service Enterprise Group
generated operating income of $783 million, down 8.5% year over
Read our full coverage on this earnings report:
PEG Beats Bottom Line, Sales Trail
Guidance for 2012
During the first quarter of 2012, Public Service Enterprise had
announced that it expects earnings in the range of $2.25 to $2.50
per share for full year 2012. It indicated that fossil operations
helped in controlling costs and thereby mitigated the impact of a
warmer winter, lower demand and a decline in gas prices. Going
forward, on the basis of this operational excellence, it expects to
generate good results.
The analysts covered by Zacks expect Public Service Enterprise
Group to post second-quarter 2012 earnings of 45 cents per share,
lower than 59 cents delivered in the prior-year quarter. Currently,
the Zacks Consensus Estimate ranges between earnings of 42 cents
and 48 cents a share.
For 2012, the Zacks Consensus Estimate stood at $2.38 per share,
lower than its prior-year earnings of $2.74 per share. The current
Zacks Estimate ranges between $2.25 and $2.51 per share.
Estimate Revisions Trend
PUBLIC SV ENTRP (PEG): Free Stock Analysis
XCEL ENERGY INC (XEL): Free Stock Analysis
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We see a downward trend for estimates for the second quarter of
2012. Among the 10 estimates, only 1 estimate moved upward while 4
moved in the opposite direction over the last 30 days. In the last
7 days, none of the estimates moved upward while 2 moved in the
However, for full-year 2012, we see an upward trend for the
estimates. One out of 13 estimates was revised upward while none
moved in the opposite direction in the last 7 days. For the last 30
days, 3 estimates moved up for full year 2012 with 1 moving in the
The analysts seem to be more positive for full year 2012 in
comparison to second quarter 2012.
The Zacks Consensus Estimate for the second quarter 2012 inched
down by a penny to 45 cents over the last 30 days. For full year
2012 the consensus estimate remained static at $2.38 for the last
With respect to earnings surprises, Public Service Enterprise Group
has topped the Zacks Consensus Estimate over the last four quarters
in the range of 1.22% to 26.87%. The average surprise over the last
four quarter remained a positive 9.38%. The earnings beat in the
last quarter was the highest at 26.87%.
Public Service Enterprise Group has a solid portfolio of regulated
and non-regulated utility assets that offer a stable earnings base
and substantial long-term growth potential. Going forward, we
believe that the low-cost nuclear fleet, assumed rate relief and
added generating capacities will drive Public Service's earnings
growth. Public Service has been pursuing growth opportunities in
the core U.S. market and increasing capital allocation in projects
that provide good risk-adjusted returns.
However, we are concerned about the increasing cost of coal, higher
pension & financial costs, and power-price volatility. Like its
Xcel Energy Inc.
), the company presently retains a short-term Zacks #3 Rank (Hold)
that corresponds with our long-term Neutral recommendation on the
Based in Newark, New Jersey, Public Service Enterprise Group Inc.
is a diversified utility holding company. Its operations are mostly
located in the Northeastern and Mid-Atlantic parts of the
U.S. Public Service Enterprise principally operates through
three key subsidiaries: Public Service Electric and Gas Company
(PSE&G), PSEG Power LLC (PSEG Power) and PSEG Energy Holdings
LLC (PSEG Energy).