Earnings Miss: Public Service Enterprise Group Incorporated Missed EPS By 16% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for Public Service Enterprise Group Incorporated (NYSE:PEG), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Public Service Enterprise Group missed earnings this time around, with US$2.8b revenue coming in 8.8% below what the analysts had modelled. Statutory earnings per share (EPS) of US$1.06 also fell short of expectations by 16%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Public Service Enterprise Group

Taking into account the latest results, the current consensus from Public Service Enterprise Group's 15 analysts is for revenues of US$10.8b in 2024. This would reflect a satisfactory 5.7% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$3.68, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$10.6b and earnings per share (EPS) of US$3.68 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.

Even though revenue forecasts increased, there was no change to the consensus price target of US$68.91, suggesting the analysts are focused on earnings as the driver of value creation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Public Service Enterprise Group at US$77.00 per share, while the most bearish prices it at US$61.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Public Service Enterprise Group's growth to accelerate, with the forecast 7.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Public Service Enterprise Group to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$68.91, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Public Service Enterprise Group analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Public Service Enterprise Group (including 1 which is potentially serious) .

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.