With a market cap of $43.9 billion, Public Service Enterprise Group Incorporated (PEG) is a diversified energy company operating primarily in the Northeastern and Mid-Atlantic regions of the United States through its key subsidiaries, PSE&G and PSEG Power. PSE&G provides regulated electricity and natural gas services in New Jersey, while PSEG Power focuses on electricity generation, energy trading, and gas supply operations. PSE&G also invests in solar generation, energy efficiency programs, and offers appliance services and repairs.
The Newark, New Jersey-based company is expected to unveil its fiscal Q4 earnings results on Monday, Feb. 24. Prior to the event, analysts anticipate the utility company to report a profit of $0.83 per share, up 53.7% from $0.54 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in one of the past four quarters while missing on three other occasions. In the last reported quarter, PEG missed the consensus EPS estimate by 1.1%.
For fiscal 2024, analysts expect PEG to report EPS of $3.67, up 5.5% from $3.48 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 9.8% year-over-year to $4.03.
PEG's shares have soared 52% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 25.5% gain and the Utilities Select Sector SPDR Fund's (XLU) 29.1% increase on a YTD basis.
Despite reporting better-than-expected Q3 revenue of $2.6 billion, PEG shares declined 6.2% on Nov. 4 as the company's adjusted EPS of $0.90 missed the consensus estimate. In addition, PEG narrowed its full-year earnings guidance to $3.64 per share - $3.68 per share. The PSE&G segment, a core part of the company's business, reported a decline in net income to $379 million. An increase in interest expenses, likely due to rising interest rates, may have also contributed to investor concerns.
Analysts' consensus rating on Public Service Enterprise stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 20 analysts covering the stock, opinions include 10 "Strong Buys," one "Moderate Buy," and nine "Holds." As of writing, PEG is trading below the average analyst price target of $91.88.
