PSEG’s 2021 Investor Day

Public Service Enterprise Group held its 2021 Investor Day on Sept. 27, 2021.  At the meeting, management offered the following guidance:

  • Reaffirmed its 2021 non-GAAP Operating Guidance of $3.50-$3.65 per share;
  • Established 2022 non-GAAP Operating Earnings Guidance of $3.30-$3.60 per share.  Acknowledging that this is an unusually wide range, management will narrow the guidance as certain uncertainties are resolved, probably during its 21Q4 conference call in February 2022.
  • Established a long-term, annual non-GAAP Operating Earnings growth target of 5%-7% to 2025.  This is off of a base of $3.45 per share, which is the midpoint of the 2022 guidance range.
  • Raised its 2021-2025 utility capital spending program by $1 billion to $14 billion to $16 billion.  This does not cover any planned or possible capital spending at PSEG Power, such as its potential offshore wind generating and transmission investments.
  • Raised its 2022 indicative annual dividend per share increase to $0.12, which increases the likely dividend to $2.16 per share from $2.04 currently.  Quarterly dividends are subject to the approval of PEG’s Board of Directors.
  • Announced a planned $500 million share repurchase upon the closing of the sale of its fossil fuel fleet.  That sale is anticipated to close either late in the 2021 fourth quarter or early in 2022.

Based upon the updated information, I am maintaining my neutral 6-12 month performance rating on PEG’s common stock.  I view its 3.4% dividend yield as attractive.

This is a summary of my report on Public Service Enterprise Group’s 2021 Investor Day. For the full report, reach out to me by telephone or email.

October 13, 2021

Stephen P. Percoco
Lark Research
839 Dewitt Street
Linden, New Jersey 07036
(908) 975-0250

© 2015-2024 by Stephen P. Percoco, Lark Research.   All rights reserved.

This blog post (as with all posts on this website) represents the opinion of Lark Research based upon its own independent research and supporting information obtained from various sources. Although Lark Research believes these sources to be reliable, it has not independently confirmed their accuracy. Consequently, this blog post may contain errors and omissions. Furthermore, this blog post is a summary of a recent report published on this subject and that report provides a more complete discussion and assessment of the risks and opportunities of any investment securities discussed herein. No representation or warranty is expressed or implied by the publication of this blog post. This blog post is for informational purposes only and shall not be construed as investment advice that meets the specific needs of any investor. Investors should, in consultation with their financial advisers, determine the suitability of the post’s recommendations, if any, to their own specific circumstances. Lark Research is not registered as an investment adviser with the Securities and Exchange Commission, pursuant to exemptions provided in the Investment Company Act of 1940. This blog post remains the property of Lark Research and may not be reproduced, copied or similarly disseminated, in whole or in part, without its prior written consent.

This entry was posted in PEG, Utilities and tagged , . Bookmark the permalink.