Public Service Enterprise Group Incorporated PEG is scheduled to release first-quarter 2026 results on May 5, before market open. The company delivered an earnings surprise of 11.4% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors That are Likely to Have Impacted PEG’s Q1 Performance
Robust demand growth across the company’s service territories, driven by the rapid expansion of data centers and supported by constructive rate decisions secured in prior quarters, is expected to have lifted the top line in the first quarter. Rising electricity demand from high-energy-use customers is likely to have strengthened sales volumes.
The company is expected to have continued to benefit from energy efficiency programs mainly by turning them into regulated investments that generate stable returns over time. Through its utility arm, PSE&G, the company can recover program costs plus a profit via approved rates, while also expanding its rate base, strengthening regulatory relationships and reducing business risk.
Continued investments in grid modernization and infrastructure upgrades are anticipated to have improved operational efficiency and service reliability. The implementation of favorable electric and gas base distribution rates is expected to have boosted the company’s bottom line.
However, higher interest expense and operating and maintenance expenses are likely to offset some of the positives in the to-be-reported quarter.
PEG’s Q1 Expectations
The Zacks Consensus Estimate for earnings is pegged at $1.49 per share, indicating a year-over-year increase of 4.2%.
The consensus estimate for revenues is pinned at $3.29 billion, implying 2.1% growth year over year.
The Zacks Consensus Estimate for total electric sales is pinned at 10,367.8 million kilowatt-hours, up 4% from the figure registered in the year-ago period. The consensus estimate for total gas sold and transported is pinned at 1,372 million therms, flat year over year.
What Our Quantitative Model Predicts
Our proven model does not predict an earnings beat for Public Service Enterprise this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Public Service Enterprise Group Incorporated Price and EPS Surprise
Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote
Earnings ESP: The company’s Earnings ESP is -3.36%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Public Service Enterprise carries a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here.
Stock to Consider
Investors may consider the following players from the same industry, as they have the right combination of elements to post an earnings beat this reporting cycle.
Ameren AEE is likely to come up with an earnings beat when it reports first-quarter results on May 5. It has an Earnings ESP of +1.29% and a Zacks Rank of 3 at present.
AEE’s long-term (three to five years) earnings growth rate is 9.27%. The Zacks Consensus Estimate for earnings is pinned at $1.17 per share, which implies a year-over-year increase of 9.4%.
Duke Energy Corporation DUK is likely to come up with an earnings beat when it reports first-quarter results on May 5. It has an Earnings ESP of +1.31% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for DUK’s earnings is pinned at $1.79 per share, which implies a year-over-year increase of 1.7%. The consensus estimate for sales implies a year-over-year increase of 2.6%.
Eversource Energy ES is likely to come up with an earnings beat when it reports first-quarter results on May 6. It has an Earnings ESP of +0.59% and a Zacks Rank of 3 at present.
ES’ long-term earnings growth rate is 3.25%. The Zacks Consensus Estimate for earnings is pinned at $1.60 per share, which implies a year-over-year increase of 6.7%.
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Ameren Corporation (AEE): Free Stock Analysis Report
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Duke Energy Corporation (DUK): Free Stock Analysis Report
Eversource Energy (ES): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).