Public Service Enterprise Group Incorporated PEG, or PSEG, is slated to report fourth-quarter and full-year 2023 results on Feb 26, before the opening bell.

PEG boasts a four-quarter average earnings surprise of 11.14%.

Factors to Note

PSEG’s service territories mostly witnessed warmer-than-normal temperatures for all of the October-December period. Such a weather pattern is expected to have boosted the electricity demand for cooling purposes in this fall. This is likely to have contributed favorably to its fourth-quarter revenues.

Public Service Enterprise Group Incorporated Price and EPS Surprise

Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote

However, an adverse weather pattern, including storms and heavy rainfall, affected PSEG’s service territories in December 2023. This might have disrupted the company’s services in those areas, thereby negatively impacting its overall revenues.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.02 billion, indicating a decline of 35.7% from the year-ago quarter’s level.

The severe weather conditions, as mentioned above, might have caused some structural damage to the company, thereby increasing its quarterly restoration costs. This is likely to have hurt PEG’s fourth-quarter earnings. Moreover, lower pension income, along with higher depreciation and interest expenses, might have had an adverse impact on the company’s earnings.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 53 cents per share, indicating a decline of 17.2% 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, which is not the case here.

Earnings ESP: PEG’s Earnings ESP is -3.04%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PSEG carries a Zacks Rank #3 at present.

A Stock to Consider

Here is a Utility player that has the right combination of elements to come up with an earnings beat this reporting cycle.

Sempra Energy SRE has an Earnings ESP of +0.29% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $4.03 billion, implying a 16.7% increase from that reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus mark for SRE’s earnings is pinned at $1.13 per share. The company delivered a four-quarter average earnings surprise of 9.03%.