Public Service Enterprise Group Inc. PEG is scheduled to release third-quarter 2024 earnings on Nov. 4, before market open.
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This utility company delivered a negative earnings surprise of 1.56% in the last reported quarter.
The company’s trailing four-quarter earnings surprise is 3.23%, on average.
Let’s discuss the factors that are likely to affect the upcoming quarterly results.
Factors to Consider Ahead of PEG’ Results
PEG’s service territories experienced above-normal temperature patterns for the majority of the third quarter. This is likely to have boosted electricity demand from its customers for cooling purposes this summer, which is expected to have contributed favorably to its quarterly revenues.
Public Service Enterprise Group Incorporated Price and EPS Surprise
Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote
Load growth in its service areas, driven by data center expansion, is likely to have further supported the company’s revenue growth.
However, some parts of its service areas witnessed severe rain and tornadoes, which are likely to have caused outages for PEG’s customers. These outages are expected to have adversely impacted the overall top-line performance.
The aforementioned storms are likely to have caused damages to PEG’s grid infrastructure, which, in turn, are expected to have pushed up its operating expenses for restoration. Higher operating expenses, along with increased interest expenses, are expected to have hurt its overall bottom-line performance.
Solid revenue growth expectations, higher electric margin driven by customer growth in the Conservation Incentive Program as well as the company’s cost reduction initiatives are likely to have boosted its earnings.
PEG’s Q3 Expectation
The Zacks Consensus Estimate for PEG’s sales is pegged at $2.48 billion, which indicates year-over-year growth of 0.9%.
The consensus estimate for earnings is pegged at 91 cents per share, which indicates year-over-year growth of 7.1%.
What Our Model Predicts for PEG
Our proven model predicts an earnings beat for PEG this time around. 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 the case here as seen below.
Earnings ESP: The company’s Earnings ESP is +0.07%. 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.
Other Stocks to Consider
Here are other players from the same industry that have the right combination of elements to beat on earnings in their upcoming releases.
Eversource Energy ES is scheduled to report its third-quarter results on Nov. 4, after market close. It has an Earnings ESP of +7.05% and a Zacks Rank of 3 at present. You can see the complete list of Zacks Rank #1 stocks here.
The Zacks Consensus Estimate for sales is pegged at $3.05 billion, which indicates 9.3% growth from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at $1.04 per share, which indicates year-over-year growth of 7.2%.
PG&E Corporation PCG is scheduled to report its third-quarter results on Nov. 7, before market open. It has an Earnings ESP of +6.35% and a Zacks Rank of 2 at present.
The consensus estimate for sales is pegged at $6.67 billion, which indicates a 13.3% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 32 cents per share, which indicates year-over-year growth of 33.3%.
Pampa Energia PAM is scheduled to report its third-quarter results on Nov. 6, after market close. It has an Earnings ESP of +18.36% and a Zacks Rank of 3 at present.
The consensus estimate for sales is pegged at $546.1 million, which indicates a 15.2% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at $1.83 per share.
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