Public Service Enterprise Group Inc.
) reported first quarter 2014 earnings of $1.01 per share,
beating the Zacks Consensus Estimate of 97 cents by 4.1%.
Earnings were up 18.82% year over year. The results reflect the
investments made by the company in its stable rate regulated
On a GAAP basis, quarterly earnings were 76 cents per share
versus 63 cents per share a year ago.
The difference between GAAP and adjusted operating earnings of 25
cents was primarily due to the combined impact of a 26 cent
mark-to-market loss from economic hedging activities and a 1 cent
storm operating & maintenance expense. One-time gains
included 1 cent from Decommissioning Trust (NDT) Fund related
Revenue in the reported quarter was $3,223.0 million, up 15.7%
from the year-ago figure of $2,786.0 million. Revenue was also
above the Zacks Consensus Estimate by 9.1%.
During the reported quarter, Electric sales volume increased 3.6%
year over year to 10,281 million kwh, while gas sales volume was
up 17.9% to 1,345 million therms.
Highlights of the Release
Total operating expenses were $2,518 million, up 15.7% from the
year-ago level. The increase in total expenses was primarily due
to a 20.6% rise in operation and maintenance expenses and a 17.4%
increase in energy costs.
Interest expenses in the reported quarter were reduced to $97
million from $102 million in the year-ago period.
: Segment operating earnings were $293.0 million versus $254.0
million in the prior-year period. The results reflect higher
capacity revenues, dispatch flexibility and the diverse fuel mix
of its generation fleet.
: The segment generated operating earnings of $214.0 million, up
19.6% year over year. The results were driven by increased
revenue associated with a greater level of investment, an
improvement in demand and a reduction in pension expense.
: The segment generated operating earnings of $8 million compared
with break-even operating results during the first quarter of
As of Mar 31, 2014, the company's cash balance was $655 million
compared with $420 million as of Mar 31, 2013.
Long-term debt as of Mar 31, 2014 totaled $8.1 billion, in line
with the 2013 end level.
In the first three months of 2014, net cash flows provided by
operating activities were $1.11 billion versus $0.87 billion in
the year-ago comparable period.
PSE&G's operating earnings are expected to range within $705
million and $745 million. PSEG Power's operating earnings are
forecast in the $550 to $610 million range. PSEG
Enterprise/Other's operating earnings are expected to range
within $35 million and $40 million.
Public Service Enterprise expects its 2014 operating earnings per
share to be within a range of $2.55 to $2.75.
Other Company Release
CMS Energy Corp.
) posted first-quarter 2014 earnings per share of 75 cents,
surpassing the Zacks Consensus Estimate of 64 cents by 17.2%
) reported first-quarter 2014 earnings of $2.29 per share,
beating the Zacks Consensus Estimate by 8.5%
American Electric Power Company Inc.
) reported first quarter 2014 operating earnings of $1.15 per
share, beating the Zacks Consensus Estimate of 91 cents by 26.4%
Public Service Enterprise Group was able to keep the earnings
streak alive thanks to the investments made by the company in the
rate-regulated operations. Its merchant generation business is
also expected to provide bottom-line support going forward.
We believe the gradual improvement in economic conditions in its
service territories and consistent capital investment to upgrade
its electric and natural gas facilities will allow the company to
maintain its strong performance.
Public Service Enterprise Group currently holds a Zacks Rank #2
AMER ELEC PWR (AEP): Free Stock Analysis
CMS ENERGY (CMS): Free Stock Analysis Report
ENTERGY CORP (ETR): Free Stock Analysis
PUBLIC SV ENTRP (PEG): Free Stock Analysis
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