Public Service 2025 Q1 Earnings Strong Performance as Net Income Rises 10.7%

Public Service (PEG) reported its fiscal 2025 Q1 earnings on Apr 30th, 2025. PEG missed EPS expectations, reporting $1.43 per share against the anticipated $1.44. The company maintained full-year operating earnings guidance in the range of $3.94 to $4.06 per share, aligning with previous projections. This reaffirmation indicates confidence in achieving anticipated growth targets and managing industry challenges effectively, underscoring a stable outlook for the fiscal year.

Revenue
Public Service's total revenue rose 16.7%, reaching $3.22 billion in the first quarter of 2025, compared to $2.76 billion in the previous year. The PSE&G segment contributed $2.66 billion, while PSEG Power & Other added $1.09 billion. After accounting for eliminations of $534 million, the consolidated total stood at $3.22 billion.

Earnings/Net Income
Public Service's EPS grew by 10.3%, reaching $1.18 in 2025 Q1 from $1.07 in 2024 Q1, reflecting ongoing earnings growth. Net income increased by 10.7% to $589 million in 2025 Q1 from $532 million in 2024 Q1. The EPS performance indicates a positive trend aligned with the company's growth strategy.

Post Earnings Price Action Review
The earnings report metrics have historically shown that positive earnings news often leads to short-term stock gains for Public Service (PEG). This quarter, the backtest results suggest that revenue growth, while not specifically detailed, likely plays a significant role in stock price movements, as it reflects the company’s ability to generate higher sales and positively impacts investor sentiment. Net income has a moderate effect, with a 3-Day win rate of 47.62%, indicating a short-term price increase roughly half of the time following earnings announcements. EPS news tends to have a slightly more pronounced impact, with a 3-Day win rate of 52.38% and potential returns of up to 4.87% post-release. While all three metrics—revenue, net income, and EPS—are pivotal in influencing stock prices, the effects are mostly short-lived. Investors should consider these factors when evaluating the potential impact of earnings reports on stock prices.

CEO Commentary
Ralph LaRossa, Chair, President, and CEO, emphasized that PSEG achieved solid operational and financial performance driven by regulatory recovery and increased gas revenues. He noted the successful nuclear generation performance, which provided carbon-free power amidst severe winter weather, contributing to the highest winter peak load in six years. LaRossa highlighted the company's focus on predictability through programs that decouple revenues from volumes, enhancing stability for customers. He expressed optimism about the ongoing capital investment plan aimed at infrastructure modernization and energy efficiency, indicating a commitment to delivering reliable service while managing costs effectively.

Guidance
PSEG reiterates its full-year non-GAAP operating earnings guidance at $3.94 to $4.06 per share, representing a 9% increase at the midpoint compared to 2024 results. The company also maintains its five-year capital spending program, projecting $21 billion to $24 billion, supporting a 6% to 7.5% CAGR in rate base through 2029, which is expected to drive a 5% to 7% non-GAAP operating earnings CAGR.

Additional News
Recently, Public Service Enterprise Group (PEG) announced a quarterly dividend of $0.63 per share, payable on June 30th, 2025. This dividend represents a 5% increase compared to the previous year, reflecting the company’s confidence in its financial stability and growth prospects. Additionally, CEO Ralph A. Larossa sold 1,378 shares of PEG stock in early April 2025, priced at $82.88 per share, resulting in a total value of $114,208.64. Despite this sale, Larossa remains heavily invested in the company with 221,670 shares. Furthermore, Natixis acquired 12,470 shares of PEG stock, highlighting institutional interest in the company. These developments show ongoing investor confidence and strategic adjustments at the executive level.