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PPL Corp (PPL) to Post Q1 Earnings: Is a Beat in Store?

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PPL Corporation (PPL - Free Report) is set to release first-quarter 2019 results on May 2, before market opens. In the last reported quarter, the company delivered positive earnings surprise of 6.12%.

What Does the Zacks Model Say?

Our proven model shows that PPL Corp is likely to beat estimates as it has the right combination of two key ingredients. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Earnings ESP: The company has Earnings ESP of +0.28%. 

Zacks Rank: PPL Corporation currently carries a Zacks Rank #3. The combination of a Zacks Rank #3 and +0.28% ESP makes us confident of an earnings beat in the quarter to be reported.

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

PPL Corporation Price and EPS Surprise

 

PPL Corporation Price and EPS Surprise | PPL Corporation Quote

 

Factors to Consider

Based on impressive performance in 2018, the company expects a strong start for 2019 with 5-6% growth.  Consistent investments in smart technology as well as shift in focus on grade resiliency and modernization are expected to boost first-quarter results.

Expansion of rate base and the ability of the company to recover nearly 80% of its investment with 12 months are likely to boost earnings. We believe that constant investments, better service quality and steady currency hedging will make positive impact on the upcoming quarterly results.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.20 billion, suggesting an increase of 3.30% year over year. The Zacks Consensus Estimate for earnings is pegged at 73 cents, calling for a decline of 1.35% year over year.

Other Stocks to Consider

Investors can consider other stocks from the same industry, which also have the right combination of elements to beat estimates in the to-be-reported quarter.

Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is expected to release first-quarter 2019 results on May 1.

NiSource, Inc (NI - Free Report) has an Earnings ESP of +0.97% and a Zacks Rank #3. The company is expected to release first-quarter 2019 results on May 1.

Exelon Corporation (EXC - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is expected to release first-quarter 2019 results on May 2.

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