Earnings Miss: Public Service Enterprise Group Incorporated Missed EPS By 37% And Analysts Are Revising Their Forecasts

Public Service Enterprise Group Incorporated (NYSE:PEG) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with US$3.0b revenue coming in 7.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of US$0.76 missed the mark badly, arriving some 37% below what was 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Public Service Enterprise Group after the latest results.

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Taking into account the latest results, the most recent consensus for Public Service Enterprise Group from 17 analysts is for revenues of US$13.3b in 2027. If met, it would imply an okay 7.8% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 31% to US$4.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$13.3b and earnings per share (EPS) of US$4.63 in 2027. 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.

View our latest analysis for Public Service Enterprise Group

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$81.32. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Public Service Enterprise Group at US$96.00 per share, while the most bearish prices it at US$69.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 6.2% growth on an annualised basis. That is in line with its 5.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. So although Public Service Enterprise Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Public Service Enterprise Group going out to 2028, 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 significant) .

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