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PPL Corp. (PPL) Lags Q3 Earnings Estimates, Narrows 2020 View

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PPL Corporation (PPL - Free Report) reported third-quarter 2020 adjusted earnings per share of 58 cents, which missed the Zacks Consensus Estimate of 61 cents by 4.9%.

The bottom line also declined 4.9% year over year. The results were impacted by lower sales volumes stemming from the ongoing pandemic and milder weather in its service territories, which in turn adversely impacted demand.

On a GAAP basis, the company generated earnings per share of 37 cents compared with 65 cents in the year-ago quarter.

Total Revenues

PPL Corp. posted revenues of $1,885 million for the third quarter, which dipped 2.5% year over year.

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Operational Highlights

PPL Corp.’s total operating expenses fell 0.7% year over year to $1,198 million for the reported quarter.

The company reported operating income of $687 million, down 5.4% from $726 million in the prior-year quarter.

Interest expenses were down 3.9% to $249 million from the year-ago quarter’s $259 million.

Segment Results

U.K. Regulated: Adjusted earnings fell 78.1% from the prior-year quarter to 7 cents per share.

Kentucky Regulated: Adjusted earnings were 17 cents per share, down 15% from the year-ago figure.  

Pennsylvania Regulated: Adjusted earnings increased 6.3% from the prior-year number to 17 cents per share.

Corporate and Other: The segment reported a loss of 4 cents for the quarter, wider than a loss of 3 cents in the prior-year quarter.

Financial Position

As of Sep 30, 2020, the company had cash and cash equivalents of $746 million compared with $815 million on Dec 31, 2019.

Long-term debt (excluding debts due within a year) was $21,243 million as of Sep 30 compared with $20,721 million at 2019-end.

Net cash provided by operating activities at the end of the first nine months of 2020 was $2,247 million compared with $1,888 million in the corresponding period of 2019.

Guidance

PPL Corp. narrowed its guidance for 2020 earnings per share to the range of $2.40-$2.50 from $2.40-$2.60, with a midpoint of $2.45, which is higher than the Zacks Consensus Estimate of $2.42.

Zacks Rank

Currently, PPL Corp. carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

WEC Energy Group (WEC - Free Report) recorded third-quarter 2020 earnings per share of 84 cents, which beat the Zacks Consensus Estimate of 76 cents by 10.5%.

Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%.

CMS Energy Corporation (CMS - Free Report) reported third-quarter 2020 adjusted earnings per share of 77 cents, which surpassed the Zacks Consensus Estimate of 68 cents by 13.2%.

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