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Tickers in this Article: PEG
On Thursday, November 1, 2012, Pub Svc Enterprise (NYSE:PEG) will release its third quarter earnings. In the past month, expectations have risen for the upcoming results. The consensus analyst estimate has risen from 70 cents per share to the current projection of earnings of 72 cents per share.

Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Everything Investors Need To Know About Earnings

What to Expect: Analysts are expecting earnings of $2.40 per share for the fiscal year.

PSE&G is expected to report revenue of $2.8 billion for the quarter, beating last year's figure of $2.62 billion by 6.9%. Revenue of $10.81 billion is expected for the fiscal year.

Company Performance: Revenue has declined 9.8% on average over the last four quarters. The sharpest fall was a drop of 19.5% from the year-earlier quarter in the third quarter of the last fiscal year.

Relative to the industry P/E ratio of 13.46, PEG's 12.1 is low. A low P/E might arise due to substantial inherent risk of the firm and its operations, poor return on equity, or improper valuation of the market. The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Profit With The Power Of Price-To-Earnings

Since July 31, 2012, the stock price has fallen 4.5% to $31.74 from $33.24. Currently, PSE&G's stock is on a downward trend. The share price has fallen $1.33 since October 17, 2012.

The Competition: Public Service Enterprise Group primarily operates as a wholesale energy supply company with nuclear, coal, gas, and oil-fired generation facilities. The company's closest competitor in the electric utilities industry, Southern (SO), will report earnings on October 31, 2012. Analysts are expecting earnings of $1.14 per share for Southern, up 6.5% from last year's earnings of $1.07 per share. Analysts are less optimistic about PSE&G than about Southern. One out of 16 analysts rate the latter a buy compared to one of 13 for the former.

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