PSEG (PEG, Financial) reported its first-quarter revenue, achieving $3.22 billion, surpassing market expectations of $3.14 billion. The company showcased robust operational and financial results at the start of the year. During January and February, the region served by PSEG endured several cold spells with temperatures dipping below 20 degrees Fahrenheit multiple times. This led to the highest winter peak load for gas and electricity seen in the past six years. Despite these demanding conditions, PSEG's electric and gas divisions upheld excellent reliability and maintained efficient customer service response times.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Public Service Enterprise Group Inc (PEG, Financial) is $87.97 with a high estimate of $102.00 and a low estimate of $72.11. The average target implies an upside of 7.80% from the current price of $81.61. More detailed estimate data can be found on the Public Service Enterprise Group Inc (PEG) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Public Service Enterprise Group Inc's (PEG, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Public Service Enterprise Group Inc (PEG, Financial) in one year is $72.02, suggesting a downside of 11.75% from the current price of $81.61. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Public Service Enterprise Group Inc (PEG) Summary page.
PEG Key Business Developments
Release Date: February 25, 2025
- Net Income (Q4 2024): $0.57 per share.
- Net Income (Full Year 2024): $3.54 per share.
- Non-GAAP Operating Earnings (Q4 2024): $0.84 per share.
- Non-GAAP Operating Earnings (Full Year 2024): $3.68 per share.
- 2025 Non-GAAP Operating Earnings Guidance: $3.94 to $4.06 per share.
- Capital Spending (2024): $3.6 billion.
- Planned Capital Spending (2025): $4 billion.
- Planned Capital Spending (2025-2029): $22.5 billion to $26 billion.
- Rate Base Growth (2025-2029): 6% to 7.5% CAGR.
- Dividend Increase (2025): $0.12 per share, annual rate of $2.52 per share.
- Liquidity (End of 2024): $2.6 billion.
- Cash Collateral Balance (End of 2024): $250 million.
- Debt Outstanding (End of 2024): $1.65 billion at PSEG Power.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Public Service Enterprise Group Inc (PEG, Financial) reported strong financial results for 2024, with net income of $3.54 per share for the full year and non-GAAP operating earnings of $3.68 per share, which was at the top of their guidance range.
- The company successfully settled its first electric and gas distribution rate case in six years, achieving a balanced outcome that recovers prudent investments and maintains affordability.
- PSE&G received approval to invest $2.9 billion in its Clean Energy Future Energy Efficiency 2 program, enhancing energy efficiency and reducing carbon emissions.
- The company completed its $3.6 billion capital spending program, including the advanced metering infrastructure program, on time and on budget.
- PSEG's Board of Directors announced a $0.12 per share increase in the annual common dividend, marking the 14th consecutive annual increase, supported by strong financial discipline.
Negative Points
- PSEG's net income for 2024 was lower compared to 2023, with a decrease from $5.13 per share in 2023 to $3.54 per share in 2024.
- The company faces challenges with the upcoming increase in customer electric bills due to the basic generation service auction results, driven by rising capacity prices.
- There is uncertainty in the PJM market, raising concerns about the ability to attract new generation and maintain reliability.
- PSEG Power & Other reported a net loss for the fourth quarter of 2024, compared to net income in the same period of 2023.
- The company is navigating regulatory complexities and potential delays in commercial discussions related to its nuclear operations, particularly concerning the Artificial Island project.
