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Is a Beat in the Cards for PPL Corp (PPL) in Q3 Earnings?

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We expect PPL Corporation (PPL - Free Report) to beat earnings estimates when it reports third-quarter 2018 results on Nov 1, before the opening bell. The utility delivered positive earnings surprises in all the last four quarters, with the average positive surprise being 8.55%

What Does the Quantitative Model Predict?

Our proven model shows that PPL Corp is likely to beat estimates in the to-be-reported quarter as it possesses the key components. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.

Earnings ESP: PPL Corp has an Earnings ESP of +1.79%. This is because the Most Accurate Estimate is pegged at 57 cents, higher than the Zacks Consensus Estimate of 56 cents.

You can uncover the best stocks to buy or sell before they’re reported with our  Earnings ESP Filter.

PPL Corporation Price and EPS Surprise

 

PPL Corporation Price and EPS Surprise | PPL Corporation Quote

Zacks Rank: Currently, PPL Corp has a Zacks Rank #3. The combination of a favorable Zacks Rank and positive ESP makes us reasonably confident of an earnings beat this season.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.

Factors to Consider

PPL Corp continues to follow an organic growth strategy for expanding and upgrading its utility systems. Nearly 80% of the company’s capital investment provided returns within a year, supporting its earnings growth. We expect its third-quarter results to reflect strong demand at its domestic and U.K. regulated segments.

The Zacks Consensus Estimate for third-quarter revenues has risen 0.8% to $1,859 million from the same period last year. The company is also expected to gain from higher transmission and distribution margins, as well as new rates.

Other Stocks to Consider

In addition to PPL Corp, here are some other companies from the same industry that you may also want to consider, as our model shows that these have the right combination of elements to beat on earnings in the quarter to be reported:

Dominion Energy Inc. (D - Free Report) is expected to release third-quarter results on Nov 1. It has an Earnings ESP of +2.7% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Eversource Energy (ES - Free Report) is anticipated to release third-quarter results on Nov 1. It has an Earnings ESP of +3.41% and carries a Zacks Rank #2.

The AES Corporation (AES - Free Report) is expected to release third-quarter results on Nov 6. It has an Earnings ESP of +3.45% and a Zacks Rank #2.

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