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PPL to Release Q4 Earnings: Time to Buy, Hold or Sell the Stock?
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Key Takeaways
PPL is set to report Q4 results on Feb. 20, with EPS seen up 23.53% and revenues up 5.76% YoY.
PPL's cost cuts, energy efficiency and data center demand in Pennsylvania might have lifted results.
PPL trades at 19.16X forward P/E versus industry's 17.17X and posts 9.08% ROE, below peers.
PPL Corporation (PPL - Free Report) is expected to report fourth-quarter 2025 results on Feb. 20, before market open.
The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, indicating a year-over-year increase of 23.53%. The consensus mark for revenues is pinned at $2.34 billion, indicating growth of 5.76% from the year-ago reported figure.
Image Source: Zacks Investment Research
PPL’s Earnings Surprise History
PPL’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the other two, delivering a negative average surprise of 1.02%.
Image Source: Zacks Investment Research
What Our Quantitative Model Predicts
Our proven model does not 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, which is not the case here as you will see below.
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.
Some stocks in the same industry that have the combination of factors indicating an earnings beat are The AES Corporation (AES - Free Report) , IDACORP (IDA - Free Report) and Pinnacle West Capital (PNW - Free Report) . AES and IDA have a Zacks Rank #2, while PNW carries a Zacks Rank #3 at present. AES, IDA and PNW currently have an Earnings ESP of +0.54%, +1.13% and +7.94%, respectively.
Key Factors Influencing PPL’s Q4 Results
PPL Corporation’s quarterly performance is likely to have benefited from ongoing cost reduction initiatives and energy efficiency programs that support customers. In addition, the expected return on capital investment in the second half of 2025 is likely to have contributed to stronger fourth-quarter earnings for the company.
PPL Corporation’s fourth-quarter earnings are also expected to have benefited from ongoing economic development across its service territory, which has been generating new demand for the services. Strong demand from data centers in Pennsylvania, along with rising private sector demand in Kentucky, is likely to have supported fourth-quarter revenues and earnings.
PPL’s fourth-quarter results are likely to benefit from contributions coming from its organic assets.
PPL Stock’s Price Performance
In the past three months, the stock has returned 2.8% compared with the industry’s growth of 1.7%.
Image Source: Zacks Investment Research
PPL Stock Trading at a Premium
PPL is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 19.16X compared with the industry average of 17.17X.
Image Source: Zacks Investment Research
PPL Stock Returns Lower Than Its Industry
Return on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. PPL’s trailing 12-month ROE is 9.08%, lower than the industry average of 10.7%.
Image Source: Zacks Investment Research
Investment Consideration for PPL
PPL Corporation plans to invest $20 billion between 2025 and 2028, with strategic spending focused on infrastructure construction across generation, transmission and distribution assets. These initiatives have already improved system reliability, as customers have been experiencing significantly fewer outages due to the company’s efforts to further strengthen its infrastructure.
PPL Corporation operates in a constructive regulatory environment, with more than 60% of its capital investment plan eligible for contemporaneous recovery. This structure helps limit the impact of regulatory lag on earnings related to its investments.
PPL Corporation has also established common design and operational standards across its utilities, including enhanced engineering and construction specifications aimed at strengthening and automating the grid to address growing weather and storm risks. These efforts are expected to have improved service resilience and allow the company to meet rising customer demand more efficiently.
Summing Up
PPL Corporation is expected to continue benefiting from rising demand across its service territories, supported by cost savings initiatives, energy efficiency programs and ongoing infrastructure upgrades that enhance customer service efficiency. Strong liquidity, continued grid modernization and load growth from data centers and the broader private sector are likely to have served as key tailwinds for the company.
Yet, considering PPL Corporation’s premium valuation and comparatively lower return on equity, investors may want to remain cautious and consider staying on the sidelines for now.
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PPL to Release Q4 Earnings: Time to Buy, Hold or Sell the Stock?
Key Takeaways
PPL Corporation (PPL - Free Report) is expected to report fourth-quarter 2025 results on Feb. 20, before market open.
The Zacks Consensus Estimate for earnings is pegged at 42 cents per share, indicating a year-over-year increase of 23.53%. The consensus mark for revenues is pinned at $2.34 billion, indicating growth of 5.76% from the year-ago reported figure.
Image Source: Zacks Investment Research
PPL’s Earnings Surprise History
PPL’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the other two, delivering a negative average surprise of 1.02%.
Image Source: Zacks Investment Research
What Our Quantitative Model Predicts
Our proven model does not 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, which is not the case here as you will see below.
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 #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks Worth a Look
Some stocks in the same industry that have the combination of factors indicating an earnings beat are The AES Corporation (AES - Free Report) , IDACORP (IDA - Free Report) and Pinnacle West Capital (PNW - Free Report) . AES and IDA have a Zacks Rank #2, while PNW carries a Zacks Rank #3 at present. AES, IDA and PNW currently have an Earnings ESP of +0.54%, +1.13% and +7.94%, respectively.
Key Factors Influencing PPL’s Q4 Results
PPL Corporation’s quarterly performance is likely to have benefited from ongoing cost reduction initiatives and energy efficiency programs that support customers. In addition, the expected return on capital investment in the second half of 2025 is likely to have contributed to stronger fourth-quarter earnings for the company.
PPL Corporation’s fourth-quarter earnings are also expected to have benefited from ongoing economic development across its service territory, which has been generating new demand for the services. Strong demand from data centers in Pennsylvania, along with rising private sector demand in Kentucky, is likely to have supported fourth-quarter revenues and earnings.
PPL’s fourth-quarter results are likely to benefit from contributions coming from its organic assets.
PPL Stock’s Price Performance
In the past three months, the stock has returned 2.8% compared with the industry’s growth of 1.7%.
Image Source: Zacks Investment Research
PPL Stock Trading at a Premium
PPL is trading at a premium relative to the industry, with a forward 12-month price-to-earnings of 19.16X compared with the industry average of 17.17X.
Image Source: Zacks Investment Research
PPL Stock Returns Lower Than Its Industry
Return on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. PPL’s trailing 12-month ROE is 9.08%, lower than the industry average of 10.7%.
Image Source: Zacks Investment Research
Investment Consideration for PPL
PPL Corporation plans to invest $20 billion between 2025 and 2028, with strategic spending focused on infrastructure construction across generation, transmission and distribution assets. These initiatives have already improved system reliability, as customers have been experiencing significantly fewer outages due to the company’s efforts to further strengthen its infrastructure.
PPL Corporation operates in a constructive regulatory environment, with more than 60% of its capital investment plan eligible for contemporaneous recovery. This structure helps limit the impact of regulatory lag on earnings related to its investments.
PPL Corporation has also established common design and operational standards across its utilities, including enhanced engineering and construction specifications aimed at strengthening and automating the grid to address growing weather and storm risks. These efforts are expected to have improved service resilience and allow the company to meet rising customer demand more efficiently.
Summing Up
PPL Corporation is expected to continue benefiting from rising demand across its service territories, supported by cost savings initiatives, energy efficiency programs and ongoing infrastructure upgrades that enhance customer service efficiency. Strong liquidity, continued grid modernization and load growth from data centers and the broader private sector are likely to have served as key tailwinds for the company.
Yet, considering PPL Corporation’s premium valuation and comparatively lower return on equity, investors may want to remain cautious and consider staying on the sidelines for now.