Public Service Enterprise Group exceeds Q3 profit expectations on the back of higher sales

Public Service Enterprise Group surpassed Wall Street expectations for the third quarter profit on Monday as the electric utility and gas utility benefitted from higher retail sales and growth in distribution margins.

U.S. Electric firms are looking to increase customer bills in order to fund upgrades to the grid. This is due to extreme weather conditions, such as hurricanes and storms, and an increased demand for industrial consumers, like data centers.

Public Service Enterprise has reached a settlement with the New Jersey Board of Public Utilities for its case regarding base rates of electric and gas distribution. The agreement will take effect on Oct. 15th, providing additional revenue of $505 million annually.

It lowered its forecast for full-year adjusted profits to $3.64-3.68 per share, down from $3.60-3.70 per share.

The new forecast's mid-point is in line with analyst expectations, which are $3.66 per share.

It provides gas and electric services to approximately 4.3 million New Jersey customers. The utility also operates nuclear-generating equipment through its PSEG Power division.

The segment's operating revenue grew 7% from the previous year to $2.14 Billion.

Retail sales at Public Service Enterprises rose by 2% compared to a year ago, with a strong increase in residential sales.

LSEG data shows that the Newark, New Jersey based company reported an adjusted profit per share of 90 cents in the third quarter. This was compared to analysts' expectations of 87 cents. (Reporting and editing by Krishna Chandra Eluri in Bengaluru)

(source: Reuters)