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It has been about a month since the last earnings report for PSEG (PEG). Shares have lost about 0.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is PSEG due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Public Service Enterprise Group Incorporated before we dive into how investors and analysts have reacted as of late
Public Service Enterprise Q2 Earnings Beat Estimates
Public Service Enterprise Group Inc., or PSEG, reported second-quarter 2020 adjusted operating earnings of 79 cents per share, which exceeded the Zacks Consensus Estimate of 59 cents by 33.9%. Moreover, the bottom line rallied 36.2% on a year-over-year basis.
Excluding one-time adjustments, the company reported quarterly earnings of 89 cents per share compared with 30 cents in second-quarter 2019.
Total Revenues
Revenues of $2,050 million in the quarter missed the Zacks Consensus Estimate of $2,297 million by 10.8%. Moreover, the figure declined 11.5% from the year-ago quarter’s $2,316 million.
In the quarter, electric sales volumes were 8,883 million kilowatt-hours, while gas sales volumes were 596 million therms.
Under Electric sales, Residential sales volumes were 3,236 million kilowatt-hours, whereas Commercial and Industrial sales volumes accounted for 5,572 million kilowatt-hours. Other sales accounted for 75 million kilowatt-hours.
Total gas sales volumes witnessed a 23% increase in firm sales volumes and a 24% decline in non-firm sales volumes of gas.
Highlights of the Release
During the second quarter of 2020, the company reported operating income of $407 million, up from $160 million in the year-ago quarter. Total operating expenses were $1,643 million, down 23.8 % from the year-ago quarter.
Interest expenses in the reported quarter were $151 million compared with $137 million in the year-ago quarter.
Segment Performance
PSE&G: Segment earnings were $283 million, up from $227 million in the prior-year quarter. PSE&G’s results in the quarter were driven by revenue growth from ongoing capital investment programs.
PSEG Power: The segment’s earnings were $170 million against losses of $40 million reported a year ago.
PSEG Enterprise/Other: The segment’s losses were $2 million compared with losses of $34 million in the second quarter of 2019.
Financial Update
Long-term debt as of Jun 30, 2020, was $15,673 million, up from the 2019-end level of $15,108 million.
PSEG generated $1,664 million in cash from operations at the end of first-half 2020 compared to $1,824 million generated in the first half of 2019.