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PPL Misses on Q2 Earnings, Announces Repurchase Program

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PPL Corporation (PPL - Free Report) reported second-quarter 2021 adjusted earnings per share of 19 cents, which missed the Zacks Consensus Estimate of 23 cents by 17.4%.

On a GAAP basis, the company recorded earnings per share of 3 cents compared with 45 cents earned in the year-ago quarter.

Total Revenues

Revenues of $1,288 million were posted for the second quarter, which improved 2% year over year.

PPL Corporation Price, Consensus and EPS Surprise

PPL Corporation Price, Consensus and EPS Surprise

PPL Corporation price-consensus-eps-surprise-chart | PPL Corporation Quote

Operational Highlights

Total operating expenses rose 11.1% year over year to $1,018 million for the reported quarter.

The company reported operating income of $270 million, down 22.1% from the prior-year quarter’s level.

Interest expenses were up 189% to $474 million from the year-ago quarter’s reading.

Segment Update

Kentucky Regulated: Adjusted earnings increased 10% from the prior-year quarter’s tally to 11 cents per share.

Pennsylvania Regulated: Adjusted earnings were 13 cents per share, down 13.3% from the year-ago figure.  

Corporate and Other: The segment reported a loss of 5 cents per share for the quarter, on par with the prior-year quarter’s level.

During the quarter, PPL Corp. divested its U.K. utility business to National Grid to focus on its core operations in the United States.

Financial Position

As of Jun 30, 2021, the company had cash and cash equivalents of $7,629 million compared with $442 million on Dec 31, 2020.

Long-term debt was $11,095 million as of Jun 30, 2021 compared with $13,615 million at 2020 end.

Net cash provided by operating activities in the first two quarters of 2021 was $1,521 million compared with $1,229 million in the comparable period of 2020.

The utility announced plans to repurchase up to $3 billion worth of shares and for 2021, it aims to buy back shares worth $500 million.

Emission Update

The company updated its 2050 net-zero carbon emission goal. Now it aims to reduce emissions by 80% within 2040 and 70% by 2035.

Zacks Rank

Currently, PPL Corp. carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 67 cents by 5.6%.

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2021 operating earnings of 59 cents per share, in line with the Zacks Consensus Estimate.

DTE Energy Company (DTE - Free Report) reported second-quarter 2021 operating earnings per share of $1.70, which beat the Zacks Consensus Estimate of $1.44 by 18.1%.

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