Results: Public Service Enterprise Group Incorporated Exceeded Expectations And The Consensus Has Updated Its Estimates

Public Service Enterprise Group Incorporated (NYSE:PEG) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 2.3% to hit US$2.6b. Statutory earnings per share (EPS) came in at US$1.04, some 8.9% above whatthe analysts had expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Public Service Enterprise Group

After the latest results, the 14 analysts covering Public Service Enterprise Group are now predicting revenues of US$11.1b in 2025. If met, this would reflect a credible 6.7% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be US$4.03, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$11.1b and earnings per share (EPS) of US$4.08 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of US$88.28, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Public Service Enterprise Group, with the most bullish analyst valuing it at US$102 and the most bearish at US$68.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Public Service Enterprise Group's rate of growth is expected to accelerate meaningfully, with the forecast 5.3% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Public Service Enterprise Group is expected to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Public Service Enterprise Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Public Service Enterprise Group analysts - going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Public Service Enterprise Group (of which 1 is a bit concerning!) you should know about.

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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.