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PPL Corp (PPL) to Report Q2 Earnings: What's in the Cards?

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PPL Corporation (PPL - Free Report) is set to release second-quarter 2020 results on Aug 10, before market open. The company delivered an earnings surprise of 1.05% in the trailing four quarters, on average.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Second-quarter results are likely to reflect the negative impact of soft demand from the commercial and industrial (C&I) customers group due to coronavirus-induced lockdown. However, stay-at-home directives to break the chain are expected to have perked up residential demand and marginally offset the shrinking demand from the C&I group. Also, the company provided payment flexibility and suspended disconnection to support its U.S. customers during the pandemic, which might have impacted the second-quarter earnings.

Meanwhile, amid fluctuating currency prices, PPL Corp hedged nearly 86% of its U.K. earnings for the remainder of 2020, which is expected to positively impact the June-quarter results.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter earnings is pegged at 56 cents, indicating a decline of 3.45% from the year-ago reported figure.

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for PPL Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
 

PPL Corporation Price and EPS Surprise

PPL Corporation Price and EPS Surprise

PPL Corporation price-eps-surprise | PPL Corporation Quote

Earnings ESP: PPL Corp has an Earnings ESP of -1.79%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, PPL Corp carries a Zacks Rank #3.

Peer Results

Earnings of some electric utilities surpassed the Zacks Consensus Estimate this reporting cycle, which include FirstEnergy Corporation (FE - Free Report) , Xcel Energy Inc. (XEL - Free Report) and NiSource Inc (NI - Free Report) . FirstEnergy’s earnings beat estimates by 3.64% while Xcel Energy’s results outpaced the same by 17.4%. Also, NiSource’s earnings surpassed the mark by 85.7%.

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