Public Service Enterprise Group Inc. (NYSE:PEG) , or PSEG, reported second-quarter 2016 operating earnings of 57 cents per share, in line with the Zacks Consensus Estimate as well as with the year-ago figure.
On a GAAP basis, quarterly earnings were 37 cents per share, down from 68 cents a year ago.
Total Revenue
Revenues of $1,905 million in the reported quarter missed the Zacks Consensus Estimate of $2,219.6 million by 14.2%, and fell 17.7% from the year-ago figure of $2,314 million.
During the reported quarter, electric sales volume decreased 2.1% to 9,662 million kilowatt-hours, while gas sales volume increased 1.7% to 844 million therms.
For electric sales, results reflected a 2.7% decline in the residential sector and a 1.9% drop in the commercial and industrial sector. This was partially offset by 8.3% growth in street lighting and 2.3% growth in interdepartmental.
Total gas sales in the reported quarter increased due to 4% growth in firm sales volume of gas and a slight 0.1% growth in non-firm sales volume of gas.
Highlights of the Release
Operating income tanked 38.9% year over year to $347 million in the quarter. Total operating expenses were $1,558 million, down 10.8%.
Interest expenses in the reported quarter were $97 million, in line with the year-ago level.
Segment Performance
PSE&G: Segment earnings were $179 million, up from $167 million in the prior-year period. Quarterly results reflect the impact of an expansion in its capital program comprising transmission and distribution.
PSEG Power: The segment generated earnings of $91 million versus $110 million a year ago. The downside was due to the impact of the decline in PJM capacity revenues and average prices on energy hedges in addition to the margin effect of an extended refueling outage at Salem 1.
PSEG Enterprise/Other: The segment generated operating earnings of $19 million, up from $12 million in the second quarter of 2015.
Financial Update
As of Jun 30, 2016, cash and cash equivalents were $648 million, compared with $394 million as of Dec 31, 2015.
Long-term debt as of Jun 30, 2016 was $10,928 million, up from the 2015-end level of $9,561 million.
Public Service Enterprise Group generated $1,722 million in cash from operations in the first half of 2016, down 22.9% year over year.
2016 Guidance
The company reiterated its overall earnings guidance of $2.80–$3.00 per share.
PSE&G’s operating earnings are expected in the range of $900–$935 million.
The company expects PSEG Power operating earnings in the $460–$525 million band.
PSEG Enterprise/ Other’s operating earnings are estimated to be $65 million.
Other Utility Releases
DTE Energy Company (NYSE:DTE) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
American Electric Power Co., Inc. (NYSE:AEP) reported second-quarter 2016 operating earnings of 95 cents per share, beating the Zacks Consensus Estimate of 90 cents by 5.6%.
CMS Energy Corporation (NYSE:CMS) reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%. Quarterly earnings also increased 80% from the year-ago figure of 25 cents.
Zacks Rank
Public Service Enterprise Group currently has a Zacks Rank #3 (Hold).
AMER ELEC PWR (AEP): Free Stock Analysis Report
CMS ENERGY (CMS): Free Stock Analysis Report
DTE ENERGY CO (DTE): Free Stock Analysis Report
PUBLIC SV ENTRP (PEG): Free Stock Analysis Report
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