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Why Is PPL (PPL) Up 2% Since Last Earnings Report?
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It has been about a month since the last earnings report for PPL (PPL - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PPL due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
PPL Corporation reported third-quarter 2020 adjusted earnings per share of 58 cents, which missed the Zacks Consensus Estimate of 61 cents by 4.9%.
The bottom line also declined 4.9% year over year. The results were impacted by lower sales volumes stemming from the ongoing pandemic and milder weather in its service territories, which in turn adversely impacted demand.
On a GAAP basis, the company generated earnings per share of 37 cents compared with 65 cents in the year-ago quarter.
Total Revenues
PPL Corp. posted revenues of $1,885 million for the third quarter, which dipped 2.5% year over year.
Operational Highlights
PPL Corp.’s total operating expenses fell 0.7% year over year to $1,198 million for the reported quarter.
The company reported operating income of $687 million, down 5.4% from $726 million in the prior-year quarter.
Interest expenses were down 3.9% to $249 million from the year-ago quarter’s $259 million.
Segment Results
U.K. Regulated: Adjusted earnings fell 78.1% from the prior-year quarter to 7 cents per share.
Kentucky Regulated: Adjusted earnings were 17 cents per share, down 15% from the year-ago figure.
Pennsylvania Regulated: Adjusted earnings increased 6.3% from the prior-year number to 17 cents per share.
Corporate and Other: The segment reported a loss of 4 cents for the quarter, wider than a loss of 3 cents in the prior-year quarter.
Financial Position
As of Sep 30, 2020, the company had cash and cash equivalents of $746 million compared with $815 million on Dec 31, 2019.
Long-term debt (excluding debts due within a year) was $21,243 million as of Sep 30 compared with $20,721 million at 2019-end.
Net cash provided by operating activities at the end of the first nine months of 2020 was $2,247 million compared with $1,888 million in the corresponding period of 2019.
Guidance
PPL Corp. narrowed its guidance for 2020 earnings per share to the range of $2.40-$2.50 from $2.40-$2.60, with a midpoint of $2.45, which is higher than the Zacks Consensus Estimate of $2.42.
How Have Estimates Been Moving Since Then?
Estimates review followed an upward path over the past two months.
VGM Scores
Currently, PPL has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
PPL has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is PPL (PPL) Up 2% Since Last Earnings Report?
It has been about a month since the last earnings report for PPL (PPL - Free Report) . Shares have added about 2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PPL due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
PPL Corp. Lags Q3 Earnings Estimates, Narrows 2020 View
PPL Corporation reported third-quarter 2020 adjusted earnings per share of 58 cents, which missed the Zacks Consensus Estimate of 61 cents by 4.9%.
The bottom line also declined 4.9% year over year. The results were impacted by lower sales volumes stemming from the ongoing pandemic and milder weather in its service territories, which in turn adversely impacted demand.
On a GAAP basis, the company generated earnings per share of 37 cents compared with 65 cents in the year-ago quarter.
Total Revenues
PPL Corp. posted revenues of $1,885 million for the third quarter, which dipped 2.5% year over year.
Operational Highlights
PPL Corp.’s total operating expenses fell 0.7% year over year to $1,198 million for the reported quarter.
The company reported operating income of $687 million, down 5.4% from $726 million in the prior-year quarter.
Interest expenses were down 3.9% to $249 million from the year-ago quarter’s $259 million.
Segment Results
U.K. Regulated: Adjusted earnings fell 78.1% from the prior-year quarter to 7 cents per share.
Kentucky Regulated: Adjusted earnings were 17 cents per share, down 15% from the year-ago figure.
Pennsylvania Regulated: Adjusted earnings increased 6.3% from the prior-year number to 17 cents per share.
Corporate and Other: The segment reported a loss of 4 cents for the quarter, wider than a loss of 3 cents in the prior-year quarter.
Financial Position
As of Sep 30, 2020, the company had cash and cash equivalents of $746 million compared with $815 million on Dec 31, 2019.
Long-term debt (excluding debts due within a year) was $21,243 million as of Sep 30 compared with $20,721 million at 2019-end.
Net cash provided by operating activities at the end of the first nine months of 2020 was $2,247 million compared with $1,888 million in the corresponding period of 2019.
Guidance
PPL Corp. narrowed its guidance for 2020 earnings per share to the range of $2.40-$2.50 from $2.40-$2.60, with a midpoint of $2.45, which is higher than the Zacks Consensus Estimate of $2.42.
How Have Estimates Been Moving Since Then?
Estimates review followed an upward path over the past two months.
VGM Scores
Currently, PPL has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
PPL has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.