PPL Corporation (PPL - Free Report) reported second-quarter 2017 adjusted earnings of 52 cents per share, beating the Zacks Consensus Estimate of 50 cents by 4%. Earnings, however, declined 7.1% year over year, primarily due to lower foreign currency exchange rates.
On a GAAP basis, the company reported earnings per share of 43 cents in the quarter compared with 71 cents a year ago. The difference between GAAP and operating earnings in the reported quarter was due to a loss of 9 cents from foreign currency-related economic hedges.
Total Revenues
PPL Corp’s total revenue of $1,725 million in the second quarter, down 2.9% compared with Zacks Consensus Estimate of $1,776 million. Revenues also decreased 3.4% year over year.
PPL Corporation Price, Consensus and EPS Surprise
Segment Results
UK Regulated: Adjusted earnings decreased 13.4% on a year-over-year to 31 cents per share.
Kentucky Regulated: Adjusted earnings increased 9.1% on a year-over-year to 12 cents per share. This was primarily because of lower sales volumes due to unfavorable weather.
Pennsylvania Regulated: Adjusted earnings in the reported quarter were 11 cents in-line with the year ago quarter.
Corporate and Other: It includes unallocated corporate-level financing and other costs. The segment reported a loss of 2 cents for the quarter compared with the loss of 2 cents for the quarter ended Jun 2016.
Operational Highlights
PPL Corp.’s total operating expenses decreased 3.5% year over year to $ 1,023 million in the reported quarter.
The company reported an operating income of $702 million, down 3.2% from $725 million a year ago.
Interest expenses slid 0.9% to $222 million from $224 million a year ago.
Financial Position
As of Jun 30, 2017, PPL Corp. had cash and cash equivalents of $467 million compared with $341 million as of Dec 31, 2016.
Long-term debt (excluding debts due within one year) was $18,387 million as of Jun 30, 2017, compared with $17,808 million at the end of 2016.
In the first half of 2017, net cash flow from operating activities was $790 million compared with $1,170 million in the prior-year period.
Guidance
PPL Corp. reaffirmed its 2017 adjusted earnings guidance in the range of $2.05–$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 $1.20, 56 cents and 50 cents, respectively. For the Corporate & Other segment, the midpoint of the full-year projection is at a loss of 11 cents per share.
The company expects 5–6% compound annual earnings growth per share from 2017 through 2020, measured against the 2017 earnings midpoint of $2.15 per share.
Zacks Rank
PPL Corp. holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%.
Eversource Energy (ES - Free Report) reported second-quarter 2017 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 68 cents by 5.8%.
FirstEnergy Corp. (FE - Free Report) reported second-quarter 2017 operating earnings of 61 cents per share, in line with the Zacks Consensus Estimate.
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PPL Corporation (PPL - Free Report) reported second-quarter 2017 adjusted earnings of 52 cents per share, beating the Zacks Consensus Estimate of 50 cents by 4%. Earnings, however, declined 7.1% year over year, primarily due to lower foreign currency exchange rates.
On a GAAP basis, the company reported earnings per share of 43 cents in the quarter compared with 71 cents a year ago. The difference between GAAP and operating earnings in the reported quarter was due to a loss of 9 cents from foreign currency-related economic hedges.
Total Revenues
PPL Corp’s total revenue of $1,725 million in the second quarter, down 2.9% compared with Zacks Consensus Estimate of $1,776 million. Revenues also decreased 3.4% year over year.
PPL Corporation Price, Consensus and EPS Surprise
Segment Results
UK Regulated: Adjusted earnings decreased 13.4% on a year-over-year to 31 cents per share.
Kentucky Regulated: Adjusted earnings increased 9.1% on a year-over-year to 12 cents per share. This was primarily because of lower sales volumes due to unfavorable weather.
Pennsylvania Regulated: Adjusted earnings in the reported quarter were 11 cents in-line with the year ago quarter.
Corporate and Other: It includes unallocated corporate-level financing and other costs. The segment reported a loss of 2 cents for the quarter compared with the loss of 2 cents for the quarter ended Jun 2016.
Operational Highlights
PPL Corp.’s total operating expenses decreased 3.5% year over year to $ 1,023 million in the reported quarter.
The company reported an operating income of $702 million, down 3.2% from $725 million a year ago.
Interest expenses slid 0.9% to $222 million from $224 million a year ago.
Financial Position
As of Jun 30, 2017, PPL Corp. had cash and cash equivalents of $467 million compared with $341 million as of Dec 31, 2016.
Long-term debt (excluding debts due within one year) was $18,387 million as of Jun 30, 2017, compared with $17,808 million at the end of 2016.
In the first half of 2017, net cash flow from operating activities was $790 million compared with $1,170 million in the prior-year period.
Guidance
PPL Corp. reaffirmed its 2017 adjusted earnings guidance in the range of $2.05–$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 $1.20, 56 cents and 50 cents, respectively. For the Corporate & Other segment, the midpoint of the full-year projection is at a loss of 11 cents per share.
The company expects 5–6% compound annual earnings growth per share from 2017 through 2020, measured against the 2017 earnings midpoint of $2.15 per share.
Zacks Rank
PPL Corp. holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%.
Eversource Energy (ES - Free Report) reported second-quarter 2017 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 68 cents by 5.8%.
FirstEnergy Corp. (FE - Free Report) reported second-quarter 2017 operating earnings of 61 cents per share, in line with the Zacks Consensus Estimate.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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