Core Insights - PSEG reported $2.47 billion in revenue for Q4 2024, a year-over-year decline of 5.4%, but exceeded the Zacks Consensus Estimate by 6.56% [1] - The EPS for the quarter was $0.84, up from $0.54 a year ago, surpassing the consensus estimate of $0.83 by 1.20% [1] Revenue Performance - Electric sales were reported at 9,174 KWH, exceeding the average estimate of 9,048.09 KWH [4] - Revenue from PSE&G was $2.11 billion, compared to the average estimate of $1.91 billion, reflecting a year-over-year increase of 14.1% [4] - Revenue from Eliminations was reported at -$316 million, slightly worse than the average estimate of -$298.75 million, but still showing a year-over-year improvement of 3.3% [4] - Revenue from Power & Other was $667 million, significantly lower than the estimated $515.05 million, marking a 37% decline year-over-year [4] Operating Income - Operating income for PSE&G was $554 million, surpassing the average estimate of $527.82 million [4] - Operating income for Power & Other was reported at -$109 million, which was below the average estimate of $58.34 million [4] Stock Performance - PSEG shares have returned +2.8% over the past month, contrasting with a -1.8% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Viewpoint - PSEG reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.83 per share, and showing an increase from $0.54 per share a year ago [1][2]. Financial Performance - The company achieved revenues of $2.47 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.56%, although this is a decrease from $2.61 billion in the same quarter last year [3]. - PSEG has exceeded consensus revenue estimates four times over the last four quarters [3]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.39 on revenues of $2.8 billion, and for the current fiscal year, it is $4.03 on revenues of $10.15 billion [8]. - The estimate revisions trend for PSEG is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [7]. Industry Context - The Utility - Electric Power industry, to which PSEG belongs, is currently in the top 50% of over 250 Zacks industries, suggesting that stocks in this category tend to outperform those in the bottom 50% by more than 2 to 1 [9].

Financial Performance - PSEG reported a net income of $1,772 million for FY 2024, down from $2,563 million in FY 2023, resulting in diluted earnings per share of $3.54 compared to $5.13 in the previous year[3]. - For Q4 2024, net income was $286 million, a decrease from $546 million in Q4 2023, with diluted earnings per share of $0.57 compared to $1.10[5]. - Net income for the year ended December 31, 2024, was $1,772 million, a decrease of 30.8% compared to $2,563 million in 2023[39]. - Operating income for the year ended December 31, 2024, was $2,353 million, down from $3,685 million in 2023, representing a decline of 36.1%[34]. - Earnings per share for the year ended December 31, 2024, were $3.54, down from $5.13 in 2023, a decrease of 30.8%[34]. - Net cash provided by operating activities for 2024 was $2,133 million, down from $3,806 million in 2023, reflecting a decline of 43.9%[39]. Capital Investment and Guidance - PSEG initiated 2025 Non-GAAP Operating Earnings guidance of $3.94 - $4.06 per share, representing a ~9% increase at the midpoint over 2024 results[6]. - The capital spending plan for 2025-2029 has been raised to $22.5 billion - $26 billion, an increase of $3.5 billion from the prior plan[6]. - PSEG's 2025-2029 capital investment plan is expected to produce a compound annual growth rate (CAGR) in rate base of 6% - 7.5%, starting from a year-end 2024 rate base of approximately $34 billion, which reflects a 12% increase over the year-end 2023 balance[13]. Segment Performance - PSEG's Public Service Electric and Gas (PSE&G) segment achieved net income of $1,547 million for FY 2024, up from $1,515 million in FY 2023, with non-GAAP Operating Earnings also increasing[12]. - PSE&G's new electric and gas distribution base rates went into effect on October 15, 2024, contributing to higher revenues in Q4 2024[12]. - PSEG Nuclear benefited from strong operating performance and the start of the nuclear production tax credit (PTC) in January 2024[9]. Customer Satisfaction and Regulatory Approvals - PSEG was recognized as 1 in customer satisfaction for residential electric and gas service in the East among large utilities by J.D. Power[9]. - The New Jersey Board of Public Utilities approved a $2.9 billion investment in PSE&G's Clean Energy Future - Energy Efficiency II Program over a six-year period[9]. Revenue and Sales - For the three months ended December 31, 2024, operating revenues were $2,465 million, a decrease of 5.4% compared to $2,605 million for the same period in 2023[31]. - Total electric sales for the year increased by 4% to 40,659 million kWh, with residential sales growing by 6% to 13,907 million kWh[41]. - Total gas sales for the year were 3,161 million therms, a slight increase of 1% compared to 2023, with firm sales up by 4%[43]. Debt and Equity - Total debt increased to $22,707 million as of December 31, 2024, from $20,233 million in 2023, marking an increase of 12.2%[37]. - The company reported a total stockholders' equity of $16,114 million as of December 31, 2024, an increase from $15,477 million in 2023, representing a growth of 4.1%[37]. - The company’s total capitalization increased to $38,821 million in 2024 from $35,710 million in 2023, an increase of 5.9%[37]. Investment Performance - The company experienced a net loss on trust investments of $64 million for the three months ended December 31, 2024, compared to a net gain of $126 million for the same period in 2023[31]. - The stock price at the end of the period rose to $84.49, compared to $61.15 in the previous year, marking an increase of 38.1%[49]. - The market price as a percent of book value increased to 261% from 197% in the previous year[49]. Dividends - The company declared dividends of $0.60 per share for the fourth quarter, up from $0.57 in the same period last year, reflecting a 5.3% increase[49]. - The dividend yield decreased to 2.8% from 3.7% year-over-year[49].

$3.54 PER SHARE NET INCOME$3.68 PER SHARE NON-GAAP OPERATING EARNINGS Initiates 2025 Non-GAAP Operating Earnings Guidance of $3.94 - $4.06 Per Share, midpoint up ~9% over 2024 results Extends PSEG's 5% - 7% Non-GAAP Operating Earnings CAGR for 2025-2029, at the Production Tax Credit threshold, from higher 2025 midpoint Raises PSEG's 2025 - 2029 Capital Spending Plan to $22.5 billion - $26 billion, up by $3.5 billion from prior plan Targets PSE&G Rate Base CAGR of 6% - 7.5% for 2025-2029, from ~12% higher Y ...

Core Insights - PSEG (PEG) is expected to report quarterly earnings of $0.83 per share, a 53.7% increase year-over-year, while revenues are forecasted to decline by 11.2% to $2.31 billion [1] Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised upward by 4.8%, indicating analysts' reassessment of their initial forecasts [2] - Changes in earnings projections are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - The consensus estimate for 'Revenue- PSE&G' is $1.91 billion, reflecting a year-over-year increase of 3.1% [4] - Analysts predict 'Revenue- Power & Other' will reach $515.05 million, indicating a significant year-over-year decline of 51.3% [5] - The estimate for 'Electric sales' is projected at 9,048.09 KWH, slightly down from 9,082 KWH a year ago [5] Stock Performance - PSEG shares have decreased by 2.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.6% [5] - PSEG holds a Zacks Rank of 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [5]

Market Overview - The equity markets in 2025 are experiencing intense volatility due to geopolitical tensions and renewed trade conflicts, particularly influenced by Trump's tariff policies against major economies like China and the European Union, leading to retaliatory measures and disrupted global supply chains [1] - The Federal Reserve's decision to maintain interest rates has thwarted investor expectations for rate cuts, prioritizing inflation control over short-term market stability, which has left investors uncertain about future monetary policy [2] Investor Behavior - Heightened volatility is prompting shifts in investor behavior, with many re-evaluating portfolio strategies; historically, investors tend to favor value investing during such times, seizing opportunities to buy undervalued stocks as others sell at lower prices [3] Value Investing Strategy - Simple value investing can lead to value traps if not executed with diligence; stocks may appear undervalued based on traditional metrics, but if the underlying business is deteriorating, it may result in poor investment choices [5] - To avoid value traps, it is crucial to assess a stock's earnings growth potential over the next 12 to 24 months, with the PEG ratio being a significant metric for value investors [6] PEG Ratio Insights - The PEG ratio is defined as (Price/Earnings)/Earnings Growth Rate, with a low PEG ratio being preferable for value investors; it helps identify the intrinsic value of a stock, although it has limitations regarding changing growth rates [7] Screening Criteria for Value Stocks - Effective PEG-based investing should consider additional parameters, including a PEG ratio less than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, market capitalization greater than $1 billion, average 20-day volume over 50,000, and upward earnings estimate revisions greater than 5% [8][9] Stock Picks - General Motors (GM) has a Zacks Rank of 2, a Value Score of A, and a five-year historical growth rate of 14.2% [11] - Expedia Group (EXPE) has a Zacks Rank of 2, a Value Score of B, and a long-term expected growth rate of 18.2% [12] - Phibro Animal Health (PAHC) boasts a Zacks Rank of 1, a Value Score of A, and a five-year expected growth rate of 26.2% [14] - Pilgrim's Pride (PPC) has a Zacks Rank of 1, a Value Score of A, and a long-term expected growth rate of 48.2% [15]

Core Points - Public Service Enterprise Group (PSEG) announced a quarterly common stock dividend of $0.63 per share for Q1 2025, marking a 5% increase in the indicative annual dividend rate to $2.52 per share [1][2] - This increase represents the 14th consecutive annual dividend increase, highlighting PSEG's commitment to consistent and sustainable growth in dividend payments [2] - PSEG has a long history of providing dividend income for 118 years, supported by a solid financial position and a strong business mix [2] Company Overview - PSEG operates New Jersey's largest transmission and distribution utility, serving approximately 2.4 million electric and 1.9 million natural gas customers [3] - The company owns a fleet of 3,750 MW of carbon-free, baseload nuclear power generating units located in New Jersey and Pennsylvania [3] - PSEG is a member of the S&P 500 Index and has been included in the Dow Jones Sustainability North America Index for 17 consecutive years [3]

Market Overview - The equity market in 2025 has experienced heightened volatility due to escalating geopolitical tensions and renewed trade conflicts, particularly influenced by Trump's tariff policies which have prompted retaliatory actions from major economies like China and the European Union [1] - The Federal Reserve's decision to maintain interest rates has added to market instability, as many investors were expecting a rate cut to alleviate economic pressures from trade disruptions and geopolitical risks [1] Investment Strategies - In times of extreme market instability, investors face the dilemma of choosing between a value strategy that seeks discounted stocks or a growth investing approach [2] - The investment strategy of the Oracle of Omaha, which has evolved from pure value investing to a GARP (growth at a reasonable price) approach, serves as a potential guide for investors [2] GARP Investing - GARP investing combines growth and value-investing principles, focusing on stocks that are undervalued yet possess solid sustainable growth potential [4] - The PEG (Price/Earnings Growth) ratio is a key metric in GARP investing, relating a stock's P/E ratio to its future earnings growth rates [5] Stock Analysis - Four stocks exemplifying the success of the GARP strategy are Pilgrim's Pride (PPC), Exelixis (EXEL), Synchrony Financial (SYF), and United Airlines (UAL) [3] - Pilgrim's Pride has a Zacks Rank of 1 and a Value Score of A, with a long-term expected earnings growth rate of 48.2% [11][12] - Exelixis, with a Zacks Rank of 2 and a Value Score of B, has a solid long-term expected growth rate of 27.4% [13][14] - Synchrony Financial holds a Zacks Rank of 2 and a Value Score of A, with a projected earnings growth rate of 12.8% over the next five years [15] - United Airlines also has a Zacks Rank of 1 and a Value Score of A, with an impressive long-term expected earnings growth rate of 11.7% [16]

Core Viewpoint - Public Service Enterprise Group (PSEG) will host its fourth quarter and full year 2024 earnings call on February 25, 2025, to discuss financial results, guidance, capital investments, and regulatory activities [1]. Group 1: Earnings Call Details - The earnings call is scheduled for 11:00 a.m. ET on February 25, 2025 [1]. - An audio webcast of the call will be available on PSEG's Investor Relations website, along with presentation materials [2]. - A replay of the audio webcast and accompanying materials will be accessible by February 26, 2025 [2]. Group 2: Company Overview - PSEG is a regulated infrastructure company focused on a clean energy future, aiming for cleaner, safer, and more reliable energy delivery [3]. - The company has been listed on the Dow Jones Sustainability North America Index for 17 consecutive years, highlighting its commitment to sustainability [3]. - PSEG is recognized on the 2023-2024 list of U.S. News' Best Companies to Work For [3]. Group 3: Investor Relations - PSEG and PSE&G provide important information through their corporate Investor Relations website [4]. - Investors are encouraged to visit the website for updates and can sign up for automatic email alerts regarding new postings [4].

Market Volatility and Investment Strategies - The equity market has experienced notable volatility due to the commencement of Trump 2.0, with initial positive reactions followed by reversals influenced by policy announcements regarding tariffs and immigration [1] - Investors are uncertain about their strategies during such political and macroeconomic upheavals, often leaning towards value investing as a response to market volatility [2] Value Investing Insights - Value investing can present opportunities when other investors sell stocks at lower prices during market uncertainty, allowing value investors to acquire stocks at discounted rates [2] - However, value investing has drawbacks, including the risk of "value traps," where stocks underperform over time due to persistent issues [4] PEG Ratio and Investment Metrics - The PEG ratio, defined as (Price/Earnings)/Earnings Growth Rate, is a crucial metric for value investors, with a lower PEG ratio being preferable [6] - The PEG ratio helps identify intrinsic stock value, although it has limitations, such as not accounting for changing growth rates over time [6] Screening Criteria for Value Stocks - Effective screening for value stocks includes criteria such as a PEG ratio less than the industry median, a P/E ratio below the industry median, a Zacks Rank of 1 or 2, market capitalization over $1 billion, and an average 20-day volume greater than 50,000 [7][8] Selected Value Stocks - **Wells Fargo & Company (WFC)**: A leading financial services company with a Zacks Rank of 1, a Value Score of B, and a five-year historical growth rate of 12.1% [9][10] - **Exelixis (EXEL)**: An oncology-focused biotechnology company with a Zacks Rank of 2, a Value Score of B, and a long-term expected growth rate of 23.7% [11][12] - **Delta Air Lines (DAL)**: A major U.S. airline with a Zacks Rank of 2, a Value Score of A, and a five-year historical growth rate of 51.3% [12][13] - **The Greenbrier Companies (GBX)**: A supplier of freight transportation equipment with a Zacks Rank of 1, a Value Score of B, and a long-term expected growth rate of 11.7% [13][14]