Public Service Enterprise Group Incorporated PEG is scheduled to release third-quarter 2026 results on Nov. 2, before market open. The company delivered an earnings surprise of 7.5% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors That Might Have Impacted PEG’s Q3 Performance
PSEG’s GridSmart Battery Program, launched in August 2026, could have benefited the company by improving grid reliability, managing peak electricity demand and deferring costly transmission and distribution infrastructure upgrades. The program offers residential customers a $5,000 incentive for qualifying home battery systems and up to $25,000 in interest-free, on-bill financing, encouraging battery adoption and supporting PSEG’s grid modernization and clean-energy initiatives.
The company’s continued investments in grid modernization and infrastructure upgrades are anticipated to have improved operational efficiency and service reliability. The implementation of favorable electric and gas base distribution rates is expected to have boosted the company’s bottom line.
Robust demand growth across the company’s service territories, driven by the rapid expansion of data centers and constructive rate decisions secured in the prior quarters, is likely to have boosted the top line.
PSEG is expected to have benefited from changes to PJM’s transmission cost allocation rules, which management said would generate approximately $33 million in savings for its zonal transmission customers from June through December 2026, with an expected annual benefit of approximately $65 million. Although these savings primarily benefit customers rather than directly translating into equivalent earnings for PSEG, the development highlights the company’s ability to secure favorable regulatory outcomes.
Continued progress on regulatory matters and infrastructure investment recovery could have supported its broader financial outlook during the quarter.
However, higher interest expense and operating and maintenance expenses might have offset some of the positives in the to-be-reported quarter.
PEG Q3 Expectations
The Zacks Consensus Estimate for earnings is pegged at $1.21 per share, indicating a year-over-year increase of 7.1%.
The consensus estimate for revenues is pinned at $3.30 billion, implying 2.3% growth year over year.
What Our Quantitative Model Predicts
Our proven model does not predict an earnings beat for Public Service Enterprise this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.
Public Service Enterprise Group Incorporated Price and EPS Surprise
Public Service Enterprise Group Incorporated Price and EPS Surprise
Public Service Enterprise Group Incorporated price-eps-surprise | Public Service Enterprise Group Incorporated Quote
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Public Service Enterprise carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stock to Consider
Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.
Pinnacle West Capital PNW is likely to come up with an earnings beat when it reports third-quarter results on Nov. 3. It has an Earnings ESP of +2.43% and a Zacks Rank of 3 at present.
PNW’s long-term (three to five years) earnings growth rate is 5.81%. The Zacks Consensus Estimate for earnings is pinned at $3.40 per share, which implies a year-over-year increase of 0.3%.
Duke Energy DUK is likely to come up with an earnings beat when it reports third-quarter results on Nov. 5. It has an Earnings ESP of +1.07% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for DUK’s earnings is pinned at $1.87 per share, which implies a year-over-year increase of 3.3%. The consensus estimate for sales implies a year-over-year increase of 4.2%.
Spire SR is likely to come up with an earnings beat when it reports fiscal fourth-quarter results on Nov. 17. It has an Earnings ESP of +6.99% and a Zacks Rank of 3 at present.
SR’s long-term earnings growth rate is 11.17%. The Zacks Consensus Estimate for sales is pinned at $305.93 million, which implies a year-over-year decrease of 8.4%.
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Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
Duke Energy Corporation (DUK) : Free Stock Analysis Report
Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
Spire Inc. (SR) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
