Public Service Enterprise Group Inc.
) to beat expectations when it reports second quarter 2013
results on Jul 30.
Why a Likely Positive Surprise?
Our proven model shows that Public Service Enterprise Group is
likely to beat earnings because it has the right combination of
two key ingredients.
Positive Zacks ESP:
Expected Surprise Prediction or ESP, which represents the
difference between the Most Accurate estimate and the Zacks
Consensus Estimate, is at +4.35%. This is a meaningful and
leading indicator of a likely positive earnings surprise for the
Zacks Rank #3 (Hold):
Note that stocks with Zacks Ranks of #1, 2 and 3 have a
significantly higher chance of beating earnings. The Sell rated
stocks (#4 and 5) should never be considered going into an
The combination of Public Service Enterprise Group's Zacks Rank
#3 (Hold) and +4.35% ESP makes us confident of a positive
earnings beat on Jul 30, 2013.
What is Driving the Better Than Expected
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. Over
the next 10 years, the company intends to invest $3.9 billion in
order to protect and strengthen its electric and gas systems
against increasingly frequent severe weather conditions. Going
forward, the low-cost nuclear fleet, assumed rate relief and
added generating capacities will drive Public Service's earnings
Also, management has taken several measures to improve its
financial stability and reduce the overall risk profile. This
includes opportunistically monetizing assets that no longer are a
strategic fit, reducing international exposure, significantly
hedging future generation business and paying down debt.
However, increasing cost of coal, higher pension & financial
costs and power-price volatility keep us somewhat concerned.
Other Stocks to Consider
Public Service Enterprise Group is not the only firm looking
up this earnings season. We also see likely earnings beats coming
from these three industry peers:
), with Earnings ESP of +17.65% and a Zacks Rank #2 (Buy).
FIRSTENERGY CP (FE): Free Stock Analysis
IDACORP INC (IDA): Free Stock Analysis Report
NORTHEAST UTIL (NU): Free Stock Analysis
PUBLIC SV ENTRP (PEG): Free Stock Analysis
To read this article on Zacks.com click here.
), with Earnings ESP of +1.96% and a Zacks Rank #2 (Buy).
), with Earnings ESP of +5.66% and a Zacks Rank #3 (Hold).