Why Is PSEG (PEG) Down 1.4% Since Last Earnings Report?

A month has gone by since the last earnings report for PSEG (PEG). Shares have lost about 1.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is PSEG due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Public Service Enterprise Group Incorporated before we dive into how investors and analysts have reacted as of late.

PEG Q3 Earnings Surpass Estimates, Revenues Increase Y/Y

Public Service Enterprise Group Incorporated, or PSEG, reported third-quarter 2025 adjusted earnings of $1.13 per share, which beat the Zacks Consensus Estimate of $1.01 by 11.9%. Earnings improved 25.6% from the prior-year reported figure of 90 cents per share.

The company reported GAAP earnings per share (EPS) of $1.24 compared with $1.04 in the corresponding period of 2024.

PEG’s Total Revenues

Operating revenues totaled $3.23 billion, which beat the Zacks Consensus Estimate of $2.73 billion by 18.2%. The top line also increased 22.1% from the year-ago figure of $2.64 billion.

Sales Volume of PEG

Electric sales volume totaled 11,804 million kilowatt-hours, which declined 1% year over year. On the other hand, gas sales volume decreased 7% to 404 million therms.

Under electric sales, residential sales volume totaled 4,539 million kilowatt-hours, down 2% from the prior-year figure. Its commercial and industrial sales volume totaled 7,181 million kilowatt-hours, reflecting a year-over-year decline of 1%.

Other sales amounted to 84 million kilowatt-hours, up 18% from the year-ago recorded number.

Total gas sales witnessed year-over-year growth of 4% in firm sales volume. Non-firm gas sales volume declined 16%.

Highlights of PEG’s Earnings Release

The operating income totaled $855 million compared with $641 million in the year-ago period, reflecting a year-over-year increase of 33.4%.

Total operating expenses were $2.37 billion, up 18.5% from the year-ago figure.

Interest expenses amounted to $253 million, which increased 11.5% year over year.

Segmental Performance of PEG

PSE&G: This segment’s net income was $515 million, up from $379 million in the third quarter of 2024.

PSEG Power & Other: Adjusted operating income for this unit amounted to $107 million compared with $141 million in the prior-year quarter.

Financial Update of PEG

The long-term debt (including the current portion of the long-term debt) as of Sept. 30, 2025, was $22.54 billion compared with $21.11 billion as of Dec. 31, 2024.

The net cash flow from operating activities was $2.58 billion during the first nine months of 2025 compared with $1.77 billion during the first nine months of 2024.

PEG’s 2025 Guidance

PEG now expects adjusted earnings to be in the range of $4.00-$4.06 per share, narrower than its previous guidance of $3.94-$4.06 per share. The Zacks Consensus Estimate for earnings is currently pegged at $4.03 per share, which lies just below the midpoint of the company’s guided range.

 

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, PSEG has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, PSEG has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

PSEG belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, Edison International (EIX), has gained 2.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Edison International reported revenues of $5.75 billion in the last reported quarter, representing a year-over-year change of +10.6%. EPS of $2.34 for the same period compares with $1.51 a year ago.

Edison International is expected to post earnings of $1.59 per share for the current quarter, representing a year-over-year change of +51.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -15.2%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Edison International. Also, the stock has a VGM Score of A.

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This article originally published on Zacks Investment Research (zacks.com).

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