Public Service Enterprise Group Inc. (PEG) on Thursday reported a 14 percent increase in profit for the third quarter from last year on higher revenues associated with an expanded capital program. Operating earnings for the quarter beat analysts' expectations, while revenues missed their estimates.
Looking ahead to fiscal 2014, the power company now expects operating earnings at the upper end of its revised guidance range.
Ralph Izzo, chairman, president and CEO of Public Service Enterprise Group said, "Our earnings continue to benefit from the expansion of our regulated utility capital programs as we execute on our business objectives to deliver safe, reliable energy to our customers and meet the needs of our shareholders even while we lowered customer gas rates another 9% on October 1."
For the third quarter, the Newark, New Jersey-based .company's net income rose to $444 million or $0.87 per share from $390 million or $0.77 per share in the prior-year quarter.
Operating earnings for the quarter were $393 million or $0.77 per share, compared to $385 million or $0.76 per share in the year-ago quarter. On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.75 per share for the quarter. Analysts' estimates typically exclude special items.
Operating revenues for the quarter grew 4 percent to $2.64 billion from $2.55 billion in the year-ago period. Analysts had a consensus revenue estimate of $2.78 billion for the quarter.
Operating earnings for the PSE&G unit rose to $200 million or $0.39 per share from $168 million or $0.33 per share in the previous year. The higher earnings reflect the impact of an increase in revenue associated with an expanded capital program and a decline in operating costs including pension expense.
However, PSEG Power operating earnings declined to $171 million or $0.34 per share from $221 millon or $0.43 per share in the same quarter last year. The results for the quarter reflect the impact of the scheduled reset in the average price received on PJM capacity and lower market prices for energy.
PSEG Enterprise/Other reported operating earnings of $22 million or $0.04 per share, compared to operating loss of $4 million or loss of less than $0.01 per share in the year-ago period. The latest quarter's results reflect the inclusion of earnings from PSEG-Long Island's (PSEG-LI) operating contract and a reduction in tax expense.
For fiscal 2014, Public Service Enterprise now forecasts operating earnings at the upper end of its revised guidance range of $2.60 to $2.75 per share. Earlier, the company forecast operating earnings at the upper end of its guidance range of $2.55 to $2.75 per share.
This compares to operating earnings of $2.58 per share in the prior year. Analysts expect the company to earn $2.73 per share for the year.
PEG is currently trading at $40.28, up $0.81 or 2.05 percent on a volume of 757,060 shares.
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