Public Service Enterprise Group Inc. Earnings: Yet Another Quarter of Profitability

S&P 500 (NYSE:SPY) component Public Service Enterprise Group Inc. (NYSE:PEG) reported its results for the first quarter. 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 First Quarter

Results: Net income for Public Service Enterprise Group Inc. fell to $493 million (97 cents per share) vs. $526 million ($1.04 per share) a year earlier. This is a decline of 6.3% from the year-earlier quarter.

Revenue: Fell 14.3% to $2.88 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Public Service Enterprise Group Inc. beat the mean analyst estimate of 67 cents per share. It fell short of the average revenue estimate of $3.18 billion.

Quoting Management: “PSEG delivered strong results in the face of challenging market conditions” said Ralph Izzo, chairman, president and chief executive officer. He went on to say, “our employees’ responsiveness to the market and the mild winter allowed us to better align expenses with operations.” He added, “we continue to implement a $6.7 billion capital program that will improve reliability and add jobs in New Jersey.” In discussing the outlook for 2012, Izzo said “we continue to forecast operating earnings for 2012 of $2.25 – $2.50 per share.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the fourth quarter of the last fiscal year, by one cent in the third quarter of the last fiscal year, and by 4 cents in the second quarter of the last fiscal year.

Net income has increased 4.9% year-over-year on average across the last five quarters. The biggest gain came in the second quarter of the last fiscal year, when income climbed 44.2% from the year-earlier quarter.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 9.7% to $2.64 billion in the fourth quarter of the last fiscal year from the year earlier.

Looking Forward: Analysts are pessimistic about the company’s results for the next quarter. The average estimate has fallen for the second quarter to 46 cents per share, down from 47 cents seven days ago. For the fiscal year, the average estimate has moved down from $2.46 a share to $2.34 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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