Back to top

Analyst Blog

We have maintained our Neutral recommendation on PPL Corporation (PPL - Analyst Report). The company currently has a Zacks Rank #3 (Hold).

Why the Reiteration?

In fourth-quarter and full-year 2012, PPL Corp.’s earnings and revenues surpassed the Zacks Consensus Estimates primarily on strong performances by its Kentucky and UK Regulated segments. On a year-over-year basis, the results were hurt by lower realized and unrealized wholesale energy marketing revenues.

We view PPL Corp. as an organization with a well diversified asset portfolio. This diverse generation mix aids the company to benefit from proposed Environmental Protection Agency regulations.

PPL Corp. continues to focus on maintaining a strong liquidity position. As of Dec 31, 2012, the company had $901 million in cash and $4.7 billion available under its domestic credit facilities. This financial condition enables the company to follow a steady inorganic growth strategy.

In addition, the company expects to achieve a stable, long-term growth from its regulated electricity delivery businesses through electric and gas base rate hikes in its Kentucky Regulated segment, improvement in operational efficiency and a strong customer-base.

However, higher operating and maintenance expenses, and stringent regulations may challenge PPL Corp.’s future performance.

The Zacks Consensus Estimate for first-quarter 2013 earnings currently stands at 71 cents per share, up 0.95% year over year primarily attributable to strong performances at Kentucky, Pennsylvania and UK regulated segments.

Other Stocks to Consider

Other stocks from the industry that are presently performing better include Brookfield Infrastructure Partners L.P. (BIP - Snapshot Report), Edison International (EIX - Analyst Report) and Otter Tail Corporation (OTTR - Snapshot Report). All the three stocks carry a Zacks Rank #1 (Strong Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%