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PPL Corporation (PPL - Free Report) reported third-quarter 2024 operating earnings per share (EPS) of 42 cents, which surpassed the Zacks Consensus Estimate of 39 cents by 7.7%. In the year-ago quarter, earnings were 43 cents per share.
On a GAAP basis, PPL recorded EPS of 29 cents compared with 31 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to a one-time item like 13 cents expenses related to acquisition integration.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Revenues
Total revenues of $2.07 billion missed the Zacks Consensus Estimate of $2.11 billion by 2.1%. The top line increased 1.1% from the year-ago figure of $2.04 billion.
In the third quarter, the company sold 17,738 gigawatt hours of electricity to its customers in Pennsylvania and Kentucky, which reflects 1.5% year-over-year growth.
Total operating expenses were $1.64 billion, up 1.8% from the year-ago quarter’s $1.61 billion. This was due to an increase in fuel and other operation and maintenance expenses.
Operating income totaled $428 million, down 2.1% from the year-ago figure of $437 million.
Interest expenses were $188 million, up 13.9% from $165 million in the corresponding period of 2023.
Segmental Updates
Pennsylvania Regulated: Adjusted EPS was 19 cents, down 5% from the year-ago figure of 20 cents. The year-over-year decrease was due to higher operating costs.
Kentucky Regulated: Adjusted EPS was 24 cents, flat year over year.
Rhode Island Regulated: Adjusted EPS was 4 cents, up 33.3% from the year-ago figure of 3 cents. Factors driving earnings results primarily included lower property taxes.
Corporate and Other: The segment incurred a loss of 5 cents per share compared with a loss of 4 cents in the year-ago quarter.
Financial Position
As of Sept. 30, 2024, PPL had cash and cash equivalents of $542 million compared with $331 million as of Dec. 31, 2023.
The long-term debt was $16.5 billion as of Sept. 30, 2024, compared with $14.6 billion as of Dec. 31, 2023.
Net cash provided by operating activities in the first nine months of 2024 was $1.83 billion compared with $1.65 billion in the year-ago period.
Guidance
PPL narrowed its 2024 ongoing earnings forecast range to $1.67-$1.73 per share from $1.63-$1.75. The Zacks Consensus Estimate is pegged at $1.72 per share, which is a tad higher than the midpoint of the company’s guided range. It reaffirmed long-term annual earnings growth rate to the range of 6-8% through 2027.
The company reiterated its capital expenditure guidance of $14.3 billion for 2024-2027.
Management expects O&M savings to be 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.
Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to report third-quarter results on Nov. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share.
PNW’s long-term (three to five years) earnings growth rate is 8.22%. The Zacks Consensus Estimate for 2024 earnings is pinned at $4.88 per share, which implies a year-over-year improvement of 10.7%.
Evergy (EVRG - Free Report) is scheduled to report third-quarter results on Nov. 7, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.95 per share, which suggests a year-over-year increase of 3.7%.
EVRG’s long-term earnings growth rate is 5.85%. The Zacks Consensus Estimate for 2024 earnings is pinned at $3.84 per share, which implies a year-over-year improvement of 8.5%.
NRG Energy (NRG - Free Report) is scheduled to report third-quarter results on Nov. 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.71 per share, which suggests a year-over-year increase of 5.6%.
The Zacks Consensus Estimate for 2024 earnings is pinned at $6.09 per share, which implies a year-over-year improvement of 41%. It delivered an average earnings surprise of 7% in the past four quarters.
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PPL's Q3 Earnings Surpass Estimates, Revenues Increase Y/Y
PPL Corporation (PPL - Free Report) reported third-quarter 2024 operating earnings per share (EPS) of 42 cents, which surpassed the Zacks Consensus Estimate of 39 cents by 7.7%. In the year-ago quarter, earnings were 43 cents per share.
On a GAAP basis, PPL recorded EPS of 29 cents compared with 31 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to a one-time item like 13 cents expenses related to acquisition integration.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Revenues
Total revenues of $2.07 billion missed the Zacks Consensus Estimate of $2.11 billion by 2.1%. The top line increased 1.1% from the year-ago figure of $2.04 billion.
PPL Corporation Price, Consensus and EPS Surprise
PPL Corporation price-consensus-eps-surprise-chart | PPL Corporation Quote
Highlights of the Release
In the third quarter, the company sold 17,738 gigawatt hours of electricity to its customers in Pennsylvania and Kentucky, which reflects 1.5% year-over-year growth.
Total operating expenses were $1.64 billion, up 1.8% from the year-ago quarter’s $1.61 billion. This was due to an increase in fuel and other operation and maintenance expenses.
Operating income totaled $428 million, down 2.1% from the year-ago figure of $437 million.
Interest expenses were $188 million, up 13.9% from $165 million in the corresponding period of 2023.
Segmental Updates
Pennsylvania Regulated: Adjusted EPS was 19 cents, down 5% from the year-ago figure of 20 cents. The year-over-year decrease was due to higher operating costs.
Kentucky Regulated: Adjusted EPS was 24 cents, flat year over year.
Rhode Island Regulated: Adjusted EPS was 4 cents, up 33.3% from the year-ago figure of 3 cents. Factors driving earnings results primarily included lower property taxes.
Corporate and Other: The segment incurred a loss of 5 cents per share compared with a loss of 4 cents in the year-ago quarter.
Financial Position
As of Sept. 30, 2024, PPL had cash and cash equivalents of $542 million compared with $331 million as of Dec. 31, 2023.
The long-term debt was $16.5 billion as of Sept. 30, 2024, compared with $14.6 billion as of Dec. 31, 2023.
Net cash provided by operating activities in the first nine months of 2024 was $1.83 billion compared with $1.65 billion in the year-ago period.
Guidance
PPL narrowed its 2024 ongoing earnings forecast range to $1.67-$1.73 per share from $1.63-$1.75. The Zacks Consensus Estimate is pegged at $1.72 per share, which is a tad higher than the midpoint of the company’s guided range. It reaffirmed long-term annual earnings growth rate to the range of 6-8% through 2027.
The company reiterated its capital expenditure guidance of $14.3 billion for 2024-2027.
Management expects O&M savings to be 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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to report third-quarter results on Nov. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share.
PNW’s long-term (three to five years) earnings growth rate is 8.22%. The Zacks Consensus Estimate for 2024 earnings is pinned at $4.88 per share, which implies a year-over-year improvement of 10.7%.
Evergy (EVRG - Free Report) is scheduled to report third-quarter results on Nov. 7, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.95 per share, which suggests a year-over-year increase of 3.7%.
EVRG’s long-term earnings growth rate is 5.85%. The Zacks Consensus Estimate for 2024 earnings is pinned at $3.84 per share, which implies a year-over-year improvement of 8.5%.
NRG Energy (NRG - Free Report) is scheduled to report third-quarter results on Nov. 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.71 per share, which suggests a year-over-year increase of 5.6%.
The Zacks Consensus Estimate for 2024 earnings is pinned at $6.09 per share, which implies a year-over-year improvement of 41%. It delivered an average earnings surprise of 7% in the past four quarters.