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) Up 4% Since Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for PPL Corporation (PPL - Free Report) . Shares have added about 4% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 drivers.
PPL Corp Q1 Earnings In Line with Estimates, Revenues Lag
PPL Corporation reported first-quarter 2017 adjusted earnings of $0.62 per share, in line with the Zacks Consensus Estimate. Earnings, however, declined 7.46% year over year.
On a GAAP basis, the company reported earnings per share of $0.59 in the quarter compared with $0.71 a year ago. The difference between GAAP and operating earnings in the reported quarter was due to a loss of $0.03 from Foreign currency-related economic hedges.
Total Revenues
PPL Corp.’s total revenue of $ 1,951 million missed the Zacks Consensus Estimate of $2,057 million by 5.2%. Revenues also decreased 3% year over year.
Segment Results
UK Regulated: Adjusted earnings increased 15.4% on a year-over-year to $0.45 per share. The surge was attributable to higher prices from Apr 1, 2016.
Kentucky Regulated: Adjusted earnings decreased 12.5% on a year-over-year to $0.14 per share. This was primarily because of lower sales volumes due to unfavorable weather.
Pennsylvania Regulated: Adjusted earnings in the reported quarter decreased 14.3% per share to $0.12, driven primarily by higher operation and maintenance expense along with higher depreciation expense.
Corporate and Other: It includes unallocated corporate-level financing and other costs. The segment reported a loss of $0.09 for the quarter compared with the loss of $0.02 for the quarter ended Mar 2016.
Operational Highlights
PPL Corp.’s total operating expenses decreased 2.8% year over year to $ 1,155 million in the reported quarter.
The company reported an operating income of $796 million, down 3.3% from $823 million a year ago.
Interest expenses slid 3.1% to $217 million from $224 million a year ago.
Financial Position
As of Mar 31, 2017, PPL Corp. had cash and cash equivalents of $409 million compared with $341 million as of Dec 31, 2016.
Long-term debt (excluding debts due within one year) was $17,958 million as of Mar 31, 2017, compared with $17,808 million at the end of 2016.
In the first three months of 2017, net cash flow from operating activities was $135 million compared with $557 million in the prior-year period.
Guidance
PPL Corp. reaffirmed its 2017 adjusted earnings guidance in the range of $2.05 to $2.25 per share, with the midpoint at $2.15.
The midpoints of the 2017 adjusted earnings guidance for UK Regulated, Kentucky Regulated and Pennsylvania Regulated are $1.18, $0.58 and $0.50, respectively. For the Corporate & Other segment, the midpoint of the full-year projection is at a loss of $0.11 per share.
The company expects 5% to 6% compound annual earnings growth per share from 2017 through 2020, measured against the 2017 earnings midpoint of $2.15 per share.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
Currently, PPL Corporation's stock has a poor Growth score of 'F', however its Momentum is doing a bit better with a 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is solely suitable for value investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PPL Corp (PPL) Up 4% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for PPL Corporation (PPL - Free Report) . Shares have added about 4% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 drivers.
PPL Corp Q1 Earnings In Line with Estimates, Revenues Lag
PPL Corporation reported first-quarter 2017 adjusted earnings of $0.62 per share, in line with the Zacks Consensus Estimate. Earnings, however, declined 7.46% year over year.
On a GAAP basis, the company reported earnings per share of $0.59 in the quarter compared with $0.71 a year ago. The difference between GAAP and operating earnings in the reported quarter was due to a loss of $0.03 from Foreign currency-related economic hedges.
Total Revenues
PPL Corp.’s total revenue of $ 1,951 million missed the Zacks Consensus Estimate of $2,057 million by 5.2%. Revenues also decreased 3% year over year.
Segment Results
UK Regulated: Adjusted earnings increased 15.4% on a year-over-year to $0.45 per share. The surge was attributable to higher prices from Apr 1, 2016.
Kentucky Regulated: Adjusted earnings decreased 12.5% on a year-over-year to $0.14 per share. This was primarily because of lower sales volumes due to unfavorable weather.
Pennsylvania Regulated: Adjusted earnings in the reported quarter decreased 14.3% per share to $0.12, driven primarily by higher operation and maintenance expense along with higher depreciation expense.
Corporate and Other: It includes unallocated corporate-level financing and other costs. The segment reported a loss of $0.09 for the quarter compared with the loss of $0.02 for the quarter ended Mar 2016.
Operational Highlights
PPL Corp.’s total operating expenses decreased 2.8% year over year to $ 1,155 million in the reported quarter.
The company reported an operating income of $796 million, down 3.3% from $823 million a year ago.
Interest expenses slid 3.1% to $217 million from $224 million a year ago.
Financial Position
As of Mar 31, 2017, PPL Corp. had cash and cash equivalents of $409 million compared with $341 million as of Dec 31, 2016.
Long-term debt (excluding debts due within one year) was $17,958 million as of Mar 31, 2017, compared with $17,808 million at the end of 2016.
In the first three months of 2017, net cash flow from operating activities was $135 million compared with $557 million in the prior-year period.
Guidance
PPL Corp. reaffirmed its 2017 adjusted earnings guidance in the range of $2.05 to $2.25 per share, with the midpoint at $2.15.
The midpoints of the 2017 adjusted earnings guidance for UK Regulated, Kentucky Regulated and Pennsylvania Regulated are $1.18, $0.58 and $0.50, respectively. For the Corporate & Other segment, the midpoint of the full-year projection is at a loss of $0.11 per share.
The company expects 5% to 6% compound annual earnings growth per share from 2017 through 2020, measured against the 2017 earnings midpoint of $2.15 per share.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
PPL Corporation Price and Consensus
PPL Corporation Price and Consensus | PPL Corporation Quote
VGM Scores
Currently, PPL Corporation's stock has a poor Growth score of 'F', however its Momentum is doing a bit better with a 'D'. Charting a somewhat similar path, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'F'. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is solely suitable for value investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.