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PPL to Release Q4 Earnings: Here's What You Need to Know

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PPL Corporation (PPL - Free Report) is scheduled to release fourth-quarter 2023 results on Feb 16, before market open. The company delivered a negative earnings surprise of 4.4% in the last reported quarter.

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

Factors to Consider

PPL’s fourth-quarter earnings are likely to have gained from the use of the Dynamic Line Rating technology, which was initiated during the third quarter. This helps in increasing the reliability of its electricity supply services during extreme weather conditions.

The company’s quarterly earnings are also expected to have benefited from ongoing savings of operation and maintenance through its centralization efforts and asset optimization.

However, higher interest expenses at its Pennsylvania Regulated segment are expected to have offset some positives in the to-be-reported quarter.

Q4 Expectations

The Zacks Consensus Estimate for earnings is pegged at 38 cents per share, indicating a year-over-year increase of 35.7%. The Zacks Consensus Estimate for revenues is pinned at $2.08 billion, implying a year-over-year decrease of 9.13%.

The consensus estimate for total electricity delivered in Pennsylvania is pegged at 9,128 gigawatt-hour (GWh), down 2.5% from the previous quarter’s reported figure. The Zacks Consensus Estimate for total electricity delivered in Kentucky is pinned at 5,965 GWh, down 26.5% from the previous quarter’s reported number.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for PPL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.  
 

PPL Corporation Price and EPS Surprise

PPL Corporation Price and EPS Surprise

PPL Corporation price-eps-surprise | PPL Corporation Quote

Earnings ESP: The company’s Earnings ESP is 0.00%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, PPL carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same industry as these have the right combination of elements to post an earnings beat this reporting cycle.

IDACORP (IDA - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 15, before market open. It has an Earnings ESP of +2.52% and a Zacks Rank #1 at present.

IDA’s long-term (three to five years) earnings growth rate is 4.38%. The Zacks Consensus Estimate for earnings is pegged at 60 cents per share.

Dominion Energy (D - Free Report) is likely to report an earnings beat when it announces fourth-quarter results on Feb 22, before market open. It has an Earnings ESP of +0.63% and a Zacks Rank #3 at present.

D’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for earnings is pegged at 40 cents per share.

The Southern Company (SO - Free Report) is expected to come up with an earnings beat when it reports fourth-quarter results on Feb 15, before market open. It has an Earnings ESP of +1.7% and a Zacks Rank #3 at present.

SO’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for earnings is pegged at 59 cents per share, indicating a year-over-year increase of 126.9%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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