Public Service Enterprise (PEG) Tops Q2 EPS by 16c; Provides FY20 EPS Mid-Point Guidance Above Consensus

Public Service Enterprise (NYSE: PEG) reported Q2 EPS of $0.76, $0.16 better than the analyst estimate of $0.60. Revenue for the quarter came in at $2.05 billion versus the consensus estimate of $2.3 billion.

• $0.89 PER SHARE OF NET INCOME
• NON-GAAP OPERATING EARNINGS OF $0.79 PER SHARE
• Re-Affirms Non-GAAP Operating Earnings Guidance at $3.30 - $3.50 Per Share
• Exploring Strategic Alternatives for PSEG Power's Non-Nuclear Fleet

Ralph Izzo, chairman, president and chief executive officer commented, "We are pleased to report solid operating and financial results at both businesses. Our employees continue to effectively respond to the challenges and requirements of providing essential utility and power services under extraordinary conditions. The state-wide, mandated closure of most businesses, schools and government buildings contributed to a decline of approximately 7% in weather normalized electric sales for the second quarter. New Jersey continues to gradually re-open businesses and activities, and effective containment of COVID-19 should expand commercial activity, and energy usage, in the months ahead. Our utility field crews are at full force and construction work continues on pace to meet our capital expenditure targets on our reliability, resiliency and infrastructure programs. In May, PSE&G also resumed on-premises customer work using personal protective equipment, customer contact screening, and physical distancing to ensure customer and employee safety. Our associates who are able to work remotely continue to do so, and we are continuing to assess when we will begin a phased return to work."

Ralph Izzo added, "We are re-affirming PSEG's non-GAAP Operating Earnings guidance for full-year 2020 of $3.30 - $3.50 per share based on our results through the first-half of the year and our confidence that we can effectively manage costs across our businesses, continue executing our investment program at PSE&G, and provide New Jersey with reliable and zero carbon sources of electricity. Weather cooperated in the second quarter and thus far, the summer has tracked above normal. PSEG Power has effectively minimized scheduled maintenance and outage costs while remaining in compliance with safety requirements. We are on-track to execute on our five-year, $12 billion to $16 billion capital plan without the need to issue new equity, and our net liquidity position at June 30 remains ample at $4 billion."

"Earlier this morning, we also announced that PSEG is exploring strategic alternatives for PSEG Power's non-nuclear generating fleet. Our intent is to accelerate the transformation of PSEG into a primarily regulated electric and gas utility -- a plan we have been executing successfully for over a decade. PSEG will explore how a potential separation of the non-nuclear assets could reduce overall business risk and earnings volatility, improve our credit profile, and enhance an already compelling ESG position driven by pending clean energy investments, methane reduction, and zero carbon generation," Izzo said. "We believe PSE&G is among the best utilities in the country and that our valuation should align with that profile."

GUIDANCE:

Public Service Enterprise sees FY2020 EPS of $3.30-$3.50, versus the consensus of $3.36.

For earnings history and earnings-related data on Public Service Enterprise (PEG) click here.

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