Core Viewpoint - PSEG reported a mixed performance in its Q2 2024 earnings, with adjusted earnings missing estimates while revenues showed slight growth year-over-year [2][4]. Financial Performance - Adjusted earnings per share (EPS) for Q2 2024 were 63 cents, missing the Zacks Consensus Estimate of 64 cents by 1.6% and declining 10% from the prior year [2][3]. - GAAP EPS was reported at 87 cents, down from $1.18 in Q2 2023 [2]. - Operating revenues totaled $2.42 billion, exceeding the Zacks Consensus Estimate of $2.4 billion by 18.7% and increasing 0.1% year-over-year [4]. Sales Volume - Electric sales volumes reached 9,817 million kilowatt-hours, up 12% year-over-year, while gas sales volumes improved 4% to 550 million therms [5]. - Residential electric sales volumes increased by 20% to 3,369 million kilowatt-hours, and commercial and industrial sales volumes rose by 8% to 6,377 million kilowatt-hours [5]. Operating Income and Expenses - Operating income for Q2 was $582 million, a decline of 26.7% from $794 million in the previous year [7]. - Total operating expenses rose by 13.2% to $1.84 billion [7]. - Interest expenses increased by 17.8% year-over-year to $218 million [7]. Segment Performance - The PSE&G segment reported net income of $302 million, down from $336 million in Q2 2023 [8]. - The PSEG Power & Other segment had adjusted operating income of $11 million, slightly up from $10 million in the prior-year quarter [8]. Financial Position - Long-term debt as of June 30, 2024, was $20.52 billion, an increase from $19.28 billion as of December 31, 2023 [8]. - Cash generated from operations in the first half of 2024 was $1.14 billion, compared to $2.41 billion in the same period last year [9]. Guidance - PSEG reaffirmed its full-year guidance, expecting adjusted earnings in the range of $3.60 to $3.70 per share, with the Zacks Consensus Estimate currently at $3.68 per share [10]. Market Sentiment - There has been a downward trend in earnings estimates for PSEG over the past month, indicating a shift in market sentiment [11][13]. - PSEG holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [13]. Industry Comparison - PSEG is part of the Zacks Utility - Electric Power industry, where Avangrid (AGR) reported a year-over-year revenue increase of 21.2% and an EPS of $0.49 for the quarter ended June 2024 [14]. - Avangrid's earnings estimates have also seen positive revisions, reflecting a more favorable outlook compared to PSEG [15].
PSEG (PEG) Up 0.9% Since Last Earnings Report: Can It Continue?