What Awaits Public Service Enterprise (PEG) in Q1 Earnings?


Public Service Enterprise Group Incorporated


PEG

, better known as PSEG, is scheduled to report first-quarter 2022 results on May 3, before the opening bell.

In the last-reported quarter, the company delivered an earnings surprise of 1.47%. PSEG has a trailing four-quarter earnings surprise of 5.32%, on average.

Factors to Note

During the January-March 2022 quarter, the company’s service territories witnessed mixed weather patterns. While at the onset of the first quarter, Public Service Enterprise’s service areas observed colder-than-normal temperature, in the mid and latter parts of the quarter, the temperature was warmer than normal.

Such a weather pattern might have had an adverse impact on the company’s top-line performance as a result of the lower usage of heaters. Usually, its service territories witness cold weather during the first quarter.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.54 billion, suggesting a decline of 12.1% from the year-ago quarter.

Public Service Enterprise Group Incorporated Price and EPS Surprise

PSEG’s service territories suffered from severe storm activities during the first quarter, which might have damaged the company’s infrastructure. Costs related to the restoration of such power outages as well as mending of its infrastructural damage might have weighed on the first-quarter bottom line.

The Zacks Consensus Estimate for

first-quarter earnings

is pegged at $1.07 per share, indicating a decline of 16.4% from the prior-year reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for PSEG this time around. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However this is not the case here.


Earnings ESP

: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.


Zacks Rank

: PSEG currently carries a Zacks Rank #3.

Stocks to Consider

Here are three

Utilities

players you may want to consider, as these have the right combination of elements to post an earnings beat this time around:


WEC Energy Group


WEC

has an Earnings ESP of +1.69% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for WEC Energy’s first-quarter revenues and earnings is pegged at $2.80 billion and $1.66 per share, respectively. WEC has a four-quarter average earnings surprise of 9.07%.


Telephone and Data Systems


TDS

has an Earnings ESP of +34.62% and a Zacks Rank #3. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

The Zacks Consensus Estimate for Telephone and Data Systems first-quarter revenues and earnings is pegged at $1.34 billion and 26 cents, respectively. TDS has a four-quarter average negative earnings surprise of 42.61%.


Dominion Energy


D

has an Earnings ESP of +0.86% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for Dominion Energy’s first-quarter revenues and earnings is pegged at $4.28 billion and $1.17, respectively. D has a four-quarter average earnings surprise of 1.09%.

Stay on top of upcoming earnings announcements with the

Zacks Earnings Calendar

.


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