We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PPL Corp (PPL) Q3 Earnings: What's in Store for the Stock?
Read MoreHide Full Article
Diversified utility PPL Corporation (PPL - Free Report) is scheduled to report third-quarter results on Nov 1, before the market opens. Last quarter, the company’s earnings witnessed a positive earnings surprise of 5.66%. Let’s see how things are shaping up for this quarter.
Factors to Consider
Above-average temperatures in its service territories in the U.S are expected to drive its topline
As PPL Corp. is sufficiently hedged for the next three years, its revenues are cushioned from the impact of an economic recession in the UK, which might follow the Brexit episode. Further, the company does not anticipate making any change in the UK investment as its business plans have already been approved by Ofgem, the regulatory body in the country.
Further, in order to leverage the historically low foreign exchange rates and tax-rate differential between the U.S. and the UK, PPL Corp. has decided to repatriate $100–$200 million a year, compared with the previously expected range of $300–$400 million.
Earnings Whispers
Our proven model does not conclusively show that PPL Corporation will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -1.70%. This is because the Most Accurate estimate stands at 58 cents, while the Zacks Consensus Estimate is pegged higher at 59 cents.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises
Zacks Rank: Though PPL Corporation’s Zacks Rank #3 increases the predictive power of ESP, its negative ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Ranks #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks in the utility space worth considering on the basis of our model, as they have the right combination of elements to post an earnings beat this quarter:
Avista Corp. (AVA - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. It is slated to report earnings on Nov 1.
Duke Energy Corporation (DUK - Free Report) has an Earnings ESP of +1.29% and a Zacks Rank #3. It is slated to report earnings on Nov 4.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
PPL Corp (PPL) Q3 Earnings: What's in Store for the Stock?
Diversified utility PPL Corporation (PPL - Free Report) is scheduled to report third-quarter results on Nov 1, before the market opens. Last quarter, the company’s earnings witnessed a positive earnings surprise of 5.66%. Let’s see how things are shaping up for this quarter.
Factors to Consider
Above-average temperatures in its service territories in the U.S are expected to drive its topline
As PPL Corp. is sufficiently hedged for the next three years, its revenues are cushioned from the impact of an economic recession in the UK, which might follow the Brexit episode. Further, the company does not anticipate making any change in the UK investment as its business plans have already been approved by Ofgem, the regulatory body in the country.
Further, in order to leverage the historically low foreign exchange rates and tax-rate differential between the U.S. and the UK, PPL Corp. has decided to repatriate $100–$200 million a year, compared with the previously expected range of $300–$400 million.
Earnings Whispers
Our proven model does not conclusively show that PPL Corporation will beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is -1.70%. This is because the Most Accurate estimate stands at 58 cents, while the Zacks Consensus Estimate is pegged higher at 59 cents.
PPL CORP Price and EPS Surprise
PPL CORP Price and EPS Surprise | PPL CORP Quote
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises
Zacks Rank: Though PPL Corporation’s Zacks Rank #3 increases the predictive power of ESP, its negative ESP makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Ranks #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are a few stocks in the utility space worth considering on the basis of our model, as they have the right combination of elements to post an earnings beat this quarter:
CMS Energy Corp. (CMS - Free Report) scheduled to report earnings on Oct 27. It is has an Earnings ESP of +3.33% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Avista Corp. (AVA - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2. It is slated to report earnings on Nov 1.
Duke Energy Corporation (DUK - Free Report) has an Earnings ESP of +1.29% and a Zacks Rank #3. It is slated to report earnings on Nov 4.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>