Post Earnings Coverage as Public Service Enterprise Group Outperformed Top- and Bottom-line Expectations

Upcoming AWS Coverage on Sempra Energy Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 11, 2017 / Active Wall St. announces its post-earnings coverage on Public Service Enterprise Group Inc. (NYSE: PEG) (“PSE&G”). The Company reported its first quarter fiscal 2017 results on April 28, 2017. The Newark, New Jersey-based Company’s earnings increased 1.1% on a y-o-y basis. Register with us now for your free membership at:

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One of Public Service Enterprise Group’s competitors within the Diversified Utilities space, Sempra Energy (NYSE: SRE), announced its Q1 2017 earnings results on May 09, 2017. AWS will be initiating a research report on Sempra Energy in the coming days.

Today, AWS is promoting its earnings coverage on PEG; touching on SRE. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended March 31, 2017, PSE&G reported revenue of $2.59 billion compared to revenue of $2.62 billion in Q1 2016. The Company’s revenue numbers exceeded analysts’ consensus of $2.56 billion.

For Q1 2017, PSE&G’s net income was $114 million, or $0.22 per share as compared to net income of $471 million, or $0.93 per share, in Q1 2016. The Company’s net income for the reported quarter was affected by accelerated depreciation associated with the early retirement of the Hudson and Mercer coal-gas generating stations and a reserve for the impairment of our leveraged leases. PSE&G’s non-GAAP operating earnings for Q1 2017 were $466 million, or $0.92 per share, compared to non-GAAP operating earnings for Q1 2016 of $463 million, or $0.91 per share. The Company’s operating earnings surpassed Wall Street’s estimates of $0.84 per share.

Segment Results

During Q1 2017, PSE&G reported net income of $299 million or $0.59 per share compared with net income of $262 million or $0.52 per share for Q1 2016. PSE&G’s first quarter results reflect the on-going successful execution of its growth initiatives and control of operating expenses. PSE&G implemented a $121 million increase in transmission revenue under the company’s FERC-approved formula rate on January 01, 2017. PSE&G’s investment in transmission is expected to grow to represent approximately $7.6 billion of rate base at the end of 2017, or 45% of the company’s year-end 2017 consolidated rate base. Gas distribution revenue increased by $16 million with the completion of gas main replacement work approved under the Energy Strong and GSMP investment programs.

PSE&G’s actual and weather-normalized electric sales were approximately 1.5% higher than a year ago due to an increase in sales to a large industrial customer whose contracted generation supply was off-line during most of the reported quarter. Residential sales comparisons were flat, and sales to the commercial sector increased 0.8%. PSE&G invested $752 million of capital expenditures during Q1 2017 and is on-track for its full-year capital investment program of $3.4 billion in its transmission and distribution infrastructure.

For Q1 2017, PSE&G Power reported a net loss of $170 million or $0.34 per share compared with net income of $192 million, or $0.38 per share, for Q1 2016. PSE&G Power’s non-GAAP operating earnings and non-GAAP adjusted EBITDA for the reported quarter were $150 million or $0.30 per share and $359 million respectively compared to non-GAAP operating earnings of $184 million or $0.36 per share and non-GAAP adjusted EBITDA of $409 million for the year earlier same quarter.

PSE&G Power’s net Loss for the reported quarter reflects the impact of incremental depreciation and other expenses of $564 million, pre-tax, associated with the decision to retire the Hudson and Mercer coal-fired generating stations on June 01, 2017.

A decline in the average price received on energy hedges reduced Power’s Q-o-Q non-GAAP operating earnings by $0.09 per share. Non-GAAP quarterly operating earnings comparisons were also reduced by $0.01 per share as a result of a decline in output and by a $0.01 per share increase in the reserve related to a FERC investigation of Power’s cost-based bids begun in 2014.

For Q1 2017, PSE&G Enterprise/Other reported a net loss of $15 million or $0.03 per share for compared to net income of $17 million or $0.03 per share for Q1 2016. The segment’s non-GAAP operating earnings for the reported quarter were $17 million, or $0.03 per share, compared to $17 million ($0.03 per share) for Q1 2016.

Stock Performance

Public Service Enterprise’s share price finished yesterday’s trading session at $42.70, slightly down 0.58%. A total volume of 4.16 million shares exchanged hands, which was higher than the 3 months average volume of 2.91 million shares. The stock has advanced 3.97% in the past six months. The stock is trading at a PE ratio of 40.90 and has a dividend yield of 4.03%.

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