S&P 500 (NYSE:SPY) component Public Service Enterprise Group (NYSE:PEG) will unveil its latest earnings on Tuesday, July 31, 2012. Public Service Enterprise Group primarily operates as a wholesale energy supply company with nuclear, coal, gas, and oil-fired generation facilities.
Public Service Enterprise Group Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for profit of 45 cents per share, a decline of 23.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 47 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 46 cents during the last month. For the year, analysts are projecting net income of $2.38 per share, a decline of 13.1% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 18 cents, reporting profit of 85 cents per share against a mean estimate of net income of 67 cents per share.
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A Look Back: In the first quarter, profit fell 6.3% to $493 million (97 cents a share) from $526 million ($1.04 a share) the year earlier, but exceeded analyst expectations. Revenue fell 14.3% to $2.88 billion from $3.35 billion.
Stock Price Performance: Between May 29, 2012 and July 25, 2012, the stock price had risen $1.71 (5.6%), from $30.78 to $32.49. The stock price saw one of its best stretches over the last year between May 30, 2012 and June 8, 2012, when shares rose for eight straight days, increasing 3.8% (+$1.18) over that span. It saw one of its worst periods between July 26, 2011 and August 4, 2011 when shares fell for eight straight days, dropping 9.1% (-$3.02) over that span.
Wall St. Revenue Expectations: Analysts predict a decline of 3.6% in revenue from the year-earlier quarter to $2.38 billion.
The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 27.7% in the fourth quarter of the last fiscal year before dropping in the first quarter.
On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 9.7% in the the fourth quarter of the last fiscal year after dropping in the first quarter.
Analyst Ratings: There are mostly holds on the stock with 11 of 13 analysts surveyed giving that rating.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.27 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.32 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.1% to $3.11 billion while assets rose 1.3% to $3.96 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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