Public Service Enterprise Group Inc. Earnings Cheat Sheet: Margins Shrink as Revenue and Net Income Fall

S&P 500 (NYSE:SPY) component Public Service Enterprise Group Inc. (NYSE:PEG) saw profit fall amid falling revenue. Public Service Enterprise Group primarily operates as a wholesale energy supply company with nuclear, coal, gas, and oil-fired generation facilities.

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Public Service Enterprise Group Earnings Cheat Sheet for the Third Quarter

Results: Net income for the diversified utilities company fell to $294 million (58 cents per share) vs. $567 million ($1.12 per share) a year earlier. This is a decline of 48.1% from the year earlier quarter.

Revenue: Fell 15.9% to $2.62 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PEG reported adjusted net income of 83 cents per share. By that measure, the company beat the mean estimate of 82 cents per share. It fell short of the average revenue estimate of $3 billion.

Quoting Management: “We reported solid operating earnings for the third quarter in spite of considerable challenges,” said Ralph Izzo, chairman, chief executive officer and president. “We experienced an historic number of customer outages and level of system damage in the wake of Hurricane Irene. The dedication and teamwork exhibited by our employees supported the restoration of service to more than 800,000 customers within five days, and assured our generating units remained on line.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 4 cents in the second quarter and by 9 cents in the first quarter.

Last quarter’s profit decrease breaks a streak of two consecutive quarters of year-over-year profit increases. Net income rose 44.2% in the second quarter and 7.1% in the first quarter.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 0.6% to $2.47 billion in the second quarter from the year earlier.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 45 cents per share to 43 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from $2.64 a share to $2.68 over the last ninety days.

Competitors to Watch: FirstEnergy Corp. (NYSE:FE), Exelon Corporation (NYSE:EXC), Pepco Holdings, Inc. (NYSE:POM), Consolidated Edison, Inc. (NYSE:ED), The Southern Company (NYSE:SO), Xcel Energy Inc. (NYSE:XEL), Genon Energy Inc (NYSE:GEN), Constellation Energy Group, Inc. (NYSE:CEG), CH Energy Group, Inc. (NYSE:CHG), and PPL Corporation (NYSE:PPL).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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