Public Service Enterprise Group Inc.PEG is scheduled to report fourth-quarter and 2018 results on Feb 27, before the opening bell.
In the las t report ed quarter, the company's earnings surpassed the Zacks Consensus Estimate by 3.26%. The bottom line also exceeded the consensus mark in three of the trailing four quarters, the average beat being 1.82%.
Let's see how things are shaping up for this announcement.
Factors at Play
Public Service Enterprise's 2018 revenues are anticipated to increase by $53 million on completion of its Gas System Modernization Program I (GSMP I) and the Energy Strong Program. These programs might have contributed to the company's fourth-quarter revenues as well, which should get reflected in the soon-to-be-reported results.
Moreover, Hurricane Michael caused heavy rainfall in the company's service territories during the fourth quarter. This, in turn, can be expected to have favored its quarterly revenues.
In line with this, the Zacks Consensus Estimate for Public Service Enterprise's fourth-quarter revenues is pegged at $2.36 billion, mirroring year-over-year growth of 12.6%.
Public Service Enterprise Group Incorporated Price and EPS Surprise
Meanwhile, steady investment in PSE&G transmission and distribution infrastructure is expected to boost the company's fourth-quarter earnings. However, higher natural gas prices are expected to hurt the bottom line.
Currently, the Zacks Consensus Estimate for the company's fourth-quarter earnings stands at 55 cents, reflecting a 3.5% decline from the year-ago quarter's figure.
Our proven model does not conclusively show that Public Service Enterprise is likely to bea t earnings in the fourth quarter. This is because a stock needs to have both - a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) - for this to happen. And this is not the case here. You can see the complete list of today's Zacks #1 Rank stocks here .
Earnings ESP : Public Service Enterprise has an Earnings ESP of -2.93%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank : Public Service Enterprise currently carries a Zacks Rank #3, which increases the possibility of an earnings beat. However, a negative Earnings ESP makes a surprise prediction difficult.
Conversely, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Pacific Gas & Electric Co. PCG has a Zacks Rank #3. The company is slated to report fourth-quarter 2018 results on Feb 28.
PNM Resources, Inc. PNM carries a Zacks Rank #3. The company is slated to report fourth-quarter 2018 results on Feb 27.
CenterPoint Energy, Inc. CNP carries a Zacks Rank #3. The company is slated to report fourth-quarter 2018 results on Feb 28.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world - and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98% , +119% and +164% gains in as little as 1 month.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report