Public Service Enterprise's Return on Invested Capital Insights

According to Benzinga Pro, during Q4, Public Service Enterprise PEG earned $445.00 million, a 128.45% increase from the preceding quarter. Public Service Enterprise also posted a total of $3.06 billion in sales, a 60.59% increase since Q3. In Q3, Public Service Enterprise brought in $1.90 billion in sales but lost $1.56 billion in earnings.

What Is ROIC?

Earnings data without context is not clear and can difficult to base trading decisions on. Return on Invested Capital (ROIC) helps to filter signal from noise by measuring yearly pre-tax profit relative to invested capital by a business. Generally, a higher ROIC suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q4, Public Service Enterprise posted an ROIC of -0.14%.

It is important to keep in mind that ROIC evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but does not account for factors that could affect earnings and sales in the near future.

Earnings data without context is not clear and can difficult to base trading decisions on. Return on Invested Capital (ROIC) helps to filter signal from noise by measuring yearly pre-tax profit relative to invested capital by a business. Generally, a higher ROIC suggests successful growth of a company and is a sign of higher earnings per share in the future. In Q4, Public Service Enterprise posted an ROIC of -0.14%.

It is important to keep in mind that ROIC evaluates past performance and is not used as a predictive tool. It is a good measure of a company's recent performance, but does not account for factors that could affect earnings and sales in the near future.

For Public Service Enterprise, a negative ROIC ratio of -0.14% suggests that management may not be effectively allocating their capital. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns; poor capital allocation can be a leech on the performance of a company over time.

Upcoming Earnings Estimate

Public Service Enterprise reported Q4 earnings per share at $0.69/share, which beat analyst predictions of $0.66/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.