Public Service Enterprise Group Inc (PEG) has reported a 75.80 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $114 million, or $0.22 a share in the quarter, compared with $471 million, or $0.93 a share for the same period last year. On an adjusted basis, earnings per share were at $0.92 for the quarter compared with $0.91 in the same period last year. Revenue during the quarter went down marginally by 0.92 percent to $2,592 million from $2,616 million in the previous year period. Gross margin for the quarter contracted 176 basis points over the previous year period to 66.28 percent. Total expenses were 93.13 percent of quarterly revenues, up from 68.39 percent for the same period last year. That has resulted in a contraction of 2475 basis points in operating margin to 6.87 percent.
Operating income for the quarter was $178 million, compared with $827 million in the previous year period.
However, the adjusted operating income for the quarter stood at $466 million compared to $463 million in the prior year period. At the same time, adjusted operating margin improved 28 basis points in the quarter to 17.98 percent from 17.70 percent in the last year period.
Ralph Izzo, chairman, president and chief executive officer, commented that “we are off to a good start for the year. Our investment program and control of O&M continue to contribute to the growth in results of our regulated utility business and helps offset the impact of a decline in energy prices on earnings at PSEG Power. Our regulated utility business is expected to grow to represent 66% of non-GAAP Operating Earnings for the full year.”
For fiscal year 2017, the company projects adjusted operating income to be in the range of $1,415 million to $1,530 million. For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.80 to $3 on adjusted basis.
Operating cash flow falls marginally
Public Service Enterprise Group Inc has generated cash of $1,196 million from operating activities during the quarter, down 1.48 percent or $ 18 million, when compared with the last year period. Cash flow from investing activities was almost stable for the quarter at $1,079 million, when compared with the previous year period.
The company has spent $347 million cash to carry out financing activities during the quarter as against cash inflow of $65 million in the last year period.
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