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Market Overview

Earnings Preview for Public Service Enterprise

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Public Service Enterprise (NYSE:PEG) announces its next round of earnings this Friday, February 26. Here is Benzinga's everything-that-matters guide for this Friday's Q4 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Public Service Enterprise EPS is expected to be around $0.65, according to sell-side analysts. Sales will likely be near $2.83 billion. Public Service Enterprise earnings in the same period a year ago was $0.64 per share. Quarterly sales came in at $2.48 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Friday, EPS would be up 1.56%. Revenue would be up 14.21% on a year-over-year basis. Public Service Enterprise's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.97 0.60 1.01 0.61
EPS Actual 0.96 0.79 1.03 0.64
Revenue Estimate 2.47 B 2.30 B 3.47 B 2.68 B
Revenue Actual 2.37 B 2.05 B 2.78 B 2.48 B

Stock Performance

Shares of Public Service Enterprise were trading at $55.98 as of February 24. Over the last 52-week period, shares are up 9.45%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Public Service Enterprise is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings