Electricity and natural gas utility Public Service Enterprise Group Inc., or PSEG, (PEG) is set to announce third-quarter results before the market opens today. On average, 10 analysts surveyed by Thomson Reuters expect the company to post earnings of $0.89 per share for the quarter, with estimates ranging between $0.78 and $1.00 per share. Analysts' estimates typically exclude special items. Revenues for the quarter are estimated to be $4.67 billion, representing a 25.6% growth over last year. In the same quarter a year ago, the Newark, New Jersey-based company had recorded net income of $656 million or $1.29 per share, and income from continuing operations of $476 million or $0.94 per share, on operating revenues of $3.72 million.
While announcing the second quarter results back in July, Ralph Izzo, chairman, president and chief executive officer, stated, "We experienced the impact of the second coolest June since 1970. We have accomplished a great deal in this quarter which provides strong support for PSEG meeting its long term goals. Regulatory approvals for major PSE&G initiatives, two of which have been received in the past 30 days, support growth as we answer the state's needs for jobs and clean energy; and additional successful sales of some of our leveraged leases enhance our financial strength."
PSEG then said that for fiscal year 2009, the "abnormally cool" weather conditions it has experienced through the end of July will challenge its ability to meet the upper end of its 2009 earnings guidance range of $3.00 to $3.25 per share. Analysts expect the company to report earnings of $3.12 per share for fiscal 2009. The company also lowered its forecast for segmental operating earnings, taking into account the impact of cooler than normal weather on electric demand and earnings. The weather has a key role in determining electricity usage, as cooler weather translates to less use of electricity.
Utility is one of areas that the Obama Administration wants to strengthen, with the creation of a Smart Grid, making use of smart meters and load-controllers. President Barack Obama on Tuesday announced a $3.4 billion federal investment, most of which would go to utilities to install meters, transformers and other equipment that can control the flow of electricity and reduce power use and homeowner bills.
According to the Energy Information Administration, the "Smart Grid" consists of devices connected to transmission and distribution lines that allow utilities and customers to receive digital information from and communicate with the grid. Such devices allow a utility to find out where an outage or other problem is on the line and sometimes even fix the problem by sending digital instructions.
While creating new pathways for energy, investments in the smart grid would also create thousands of new jobs and save consumers more than $20 billion in electricity bills over the next 30 years. According to the Electric Power Research Institute, the implementation of smart grid technologies could reduce electricity use by more than 4% by 2030.
The Smart Grid Investment Grant awards, ranging from $400 thousand to $200 million, will be used to develop and install technology to make electricity transmission more reliable. It will help the delivery of energy generated from sources such as wind and solar power. The federal aid is part of the $787 billion economic stimulus legislation approved by Congress in February.
Founded in 1985, PSEG, through its subsidiaries, engages in the transmission, distribution, and sale of electric energy and natural gas to commercial, residential, and industrial customers primarily in the Northeastern and Mid Atlantic United States. The company also operates as an independent wholesale energy supply company. PSEG operates through three principal direct wholly owned subsidiaries, namely, Public Service Electric and Gas Co., PSEG Power LLC and PSEG Energy Holdings LLC.
In its preceding second quarter, PSEG had reported a net income of $311 million or $0.61 per share, compared to net loss of $150 million, or $0.29 per share last year, helped by higher contracted pricing and lower fuel costs at the PSEG Power segment even as it continued to deal with lower demand. Excluding items, operating earnings increased to $318 million or $0.63 per share from $313 million or $0.61 per share in the year-ago quarter. Operating revenues for the quarter increased to $2.56 billion from $2.55 billion in the same period last year.
Among other utilities, Akron, Ohio-based FirstEnergy Corp. (FE) reported Tuesday a profit for the third quarter that more than halved from last year, reflecting weak revenues across all its business segments. The company's third-quarter net income available to FirstEnergy Corp. was $234 million or $0.77 per share, compared to $471 million or $1.54 per share in the prior-year quarter. Normalized non-GAAP earnings, excluding special items, were $1.11 per share, compared to $1.60 per share last year. Quarterly revenues declined to $3.41 billion from the previous year's revenue of $3.91 billion.
New York-based Consolidated Edison, Inc. (ED) is slated to release third-quarter results on November 2, with analysts projecting earnings of $1.04 per share on revenues of $3.59 billion.
Allegheny Energy Inc. (AYE) is slated to release its quarterly results on October 29, with analysts projecting earnings of $0.54 per share on revenues of $952.14 million.
Another peer, Dominion Resources Inc. (D) will publish its third-quarter results on October 30, with analysts expecting earnings of $0.90 per share on revenues of $3.94 billion. The energy company projects third-quarter operating earnings in a range of $0.88 - $0.93 per share.
PEG closed Tuesday's regular trading session at $29.76, up $0.08 or 0.27%, on a volume of 4.2 million shares. In the past 52 weeks, shares have been trading in a range of $23.65 to $34.02, with a 3-month average volume of 2.98 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.