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PPL's Q4 Earnings Beats Estimates, Capital Expenditure Lifted
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PPL Corporation (PPL - Free Report) reported fourth-quarter 2023 operating earnings per share (EPS) of 40 cents, which surpassed the Zacks Consensus Estimate of 38 cents by 5.3%. The bottom line increased 42.9% from the year-ago quarter’s figure of 28 cents.
In the fourth quarter on a GAAP basis, PPL recorded EPS of 15 cents compared with 26 cents in the year-ago quarter.
2023 adjusted EPS was $1.60 compared with $1.41 in 2022. 2023 EPS was at the top end of the guided range of $1.55-$1.60.
Revenues
Total revenues of $2.03 billion missed the Zacks Consensus Estimate of $2.08 billion by 2.4%. The top line declined 11.3% from the year-ago quarter’s figure of $2.29 billion.
2023 revenues of $8.3 billion were up 5.2% from $7.9 billion in 2022.
Total operating expenses were $1.64 billion, down 16% from the year-ago quarter’s $1.95 billion. This decrease was due to a fall in fuel and energy purchase expenses and lower other operation and maintenance (O&M) expenses.
The operating income totaled $390 million, up 16.1% from the year-ago quarter’s figure of $336 million.
Interest expense was $172 million, up 13.1% year-over-year from $152 million in fourth-quarter 2022.
Segmental Updates
Kentucky Regulated: Adjusted EPS was 17 cents in this segment, up 54.5% from the year-ago quarter’s figure of 11 cents. This unit recorded total electricity sales of 8,810 gigawatt-hour (GWh), down 4.2% year over year.
Pennsylvania Regulated: Adjusted EPS was 20 cents, up 25% from the year-ago quarter’s level of 16 cents. This segment recorded total electricity sales of 6,888 GWh, down 5.9% year over year. Our model predicted the same to be 9,452 GWh for the fourth quarter.
Rhode Island Regulated: Adjusted EPS for the quarter was 5 cents per share, up 66.7% year over year.
Corporate and Other: The segment incurred a loss of 2 cents per share, on par with the year-ago quarter’s actuals.
Financial Position
As of Dec 31, 2023, PPL had cash and cash equivalents of $331 million compared with $356 million as of Dec 31, 2022.
The long-term debt was $14.6 billion as of Dec 31, 2023, compared with $12.9 billion as of Dec 31, 2022.
Net cash provided by operating activities in 2023 was $1.75 billion compared with $1.73 billion in the year-ago period.
Guidance
PPL announced its 2024 EPS guidance of $1.63-$1.75. The Zacks Consensus Estimate is pegged at $1.72 per share, which is higher than the midpoint of the company’s guided range.
The company increased its projection for capital expenditure to $14.3 billion for 2024 to 2027. Earlier it suggested the metric to be $11.9 billion for 2023 to 2026 period.
The company expects O&M savings of at least $175 million by 2026. PPL is on track to deliver O&M savings in the range of $120-$130 million by the end of 2024.
Exelon Corporation (EXC - Free Report) is scheduled to report fourth-quarter results on Feb 21, before market open. The Zacks Consensus Estimate for EPS is pegged at 58 cents.
EXC’s long-term (three-to-five years) earnings growth rate is 5.69%. The company delivered an average earnings surprise of 1.8% in the last four quarters.
Ameren Corporation (AEE - Free Report) is slated to report fourth-quarter results on Feb 22, after market close. The Zacks Consensus Estimate for EPS is pegged at 61 cents.
AEE’s long-term earnings growth rate is 5.89%. It delivered an average earnings surprise of 9.5% in the last four quarters.
NRG Energy, Inc. (NRG - Free Report) is scheduled to report fourth-quarter results on Feb 28, before market open. The Zacks Consensus Estimate for EPS is pegged at 94 cents.
NRG’s long-term earnings growth rate is 13.75%. It delivered an average earnings surprise of 4.7% in the last four quarters.
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PPL's Q4 Earnings Beats Estimates, Capital Expenditure Lifted
PPL Corporation (PPL - Free Report) reported fourth-quarter 2023 operating earnings per share (EPS) of 40 cents, which surpassed the Zacks Consensus Estimate of 38 cents by 5.3%. The bottom line increased 42.9% from the year-ago quarter’s figure of 28 cents.
In the fourth quarter on a GAAP basis, PPL recorded EPS of 15 cents compared with 26 cents in the year-ago quarter.
2023 adjusted EPS was $1.60 compared with $1.41 in 2022. 2023 EPS was at the top end of the guided range of $1.55-$1.60.
Revenues
Total revenues of $2.03 billion missed the Zacks Consensus Estimate of $2.08 billion by 2.4%. The top line declined 11.3% from the year-ago quarter’s figure of $2.29 billion.
2023 revenues of $8.3 billion were up 5.2% from $7.9 billion in 2022.
PPL Corporation Price, Consensus and EPS Surprise
PPL Corporation price-consensus-eps-surprise-chart | PPL Corporation Quote
Highlights of the Release
Total operating expenses were $1.64 billion, down 16% from the year-ago quarter’s $1.95 billion. This decrease was due to a fall in fuel and energy purchase expenses and lower other operation and maintenance (O&M) expenses.
The operating income totaled $390 million, up 16.1% from the year-ago quarter’s figure of $336 million.
Interest expense was $172 million, up 13.1% year-over-year from $152 million in fourth-quarter 2022.
Segmental Updates
Kentucky Regulated: Adjusted EPS was 17 cents in this segment, up 54.5% from the year-ago quarter’s figure of 11 cents. This unit recorded total electricity sales of 8,810 gigawatt-hour (GWh), down 4.2% year over year.
Pennsylvania Regulated: Adjusted EPS was 20 cents, up 25% from the year-ago quarter’s level of 16 cents. This segment recorded total electricity sales of 6,888 GWh, down 5.9% year over year. Our model predicted the same to be 9,452 GWh for the fourth quarter.
Rhode Island Regulated: Adjusted EPS for the quarter was 5 cents per share, up 66.7% year over year.
Corporate and Other: The segment incurred a loss of 2 cents per share, on par with the year-ago quarter’s actuals.
Financial Position
As of Dec 31, 2023, PPL had cash and cash equivalents of $331 million compared with $356 million as of Dec 31, 2022.
The long-term debt was $14.6 billion as of Dec 31, 2023, compared with $12.9 billion as of Dec 31, 2022.
Net cash provided by operating activities in 2023 was $1.75 billion compared with $1.73 billion in the year-ago period.
Guidance
PPL announced its 2024 EPS guidance of $1.63-$1.75. The Zacks Consensus Estimate is pegged at $1.72 per share, which is higher than the midpoint of the company’s guided range.
The company increased its projection for capital expenditure to $14.3 billion for 2024 to 2027. Earlier it suggested the metric to be $11.9 billion for 2023 to 2026 period.
The company expects O&M savings of at least $175 million by 2026. PPL is on track to deliver O&M savings in the range of $120-$130 million by the end of 2024.
Zacks Rank
PPL currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Exelon Corporation (EXC - Free Report) is scheduled to report fourth-quarter results on Feb 21, before market open. The Zacks Consensus Estimate for EPS is pegged at 58 cents.
EXC’s long-term (three-to-five years) earnings growth rate is 5.69%. The company delivered an average earnings surprise of 1.8% in the last four quarters.
Ameren Corporation (AEE - Free Report) is slated to report fourth-quarter results on Feb 22, after market close. The Zacks Consensus Estimate for EPS is pegged at 61 cents.
AEE’s long-term earnings growth rate is 5.89%. It delivered an average earnings surprise of 9.5% in the last four quarters.
NRG Energy, Inc. (NRG - Free Report) is scheduled to report fourth-quarter results on Feb 28, before market open. The Zacks Consensus Estimate for EPS is pegged at 94 cents.
NRG’s long-term earnings growth rate is 13.75%. It delivered an average earnings surprise of 4.7% in the last four quarters.