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PPL Corp (PPL) Misses Q1 Earnings and Revenue Estimates

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PPL Corporation (PPL - Free Report) reported first-quarter 2019 adjusted earnings per share of 70 cents, which missed the Zacks Consensus Estimate of 73 cents by 4.1%. The figure declined 5.4% year over year, primarily due to lower earnings in the U.S. segments.

On a GAAP basis, the company generated EPS of 64 cents compared with 65 cents in the year-ago quarter. The difference between GAAP and operating earnings stemmed from expenses in the U.K. Regulated segment.

Total Revenues

The company generated revenues worth $2,079 million in the first quarter, which missed the Zacks Consensus Estimate of $2,196 million by 5.3%. The figure declined 2.2% year over year.

PPL Corporation Price, Consensus and EPS Surprise

PPL Corporation Price, Consensus and EPS Surprise | PPL Corporation Quote

Segment Results

U.K. Regulated: Adjusted earnings increased 13.5% from the prior-year quarter’s figure to 42 cents per share. The upside was primarily supported by higher prices, pension income and foreign currency exchange rates as well as dilution.

Kentucky Regulated: Adjusted earnings were 16 cents, down from 19 cents in the year-ago quarter.  The decline was primarily caused by higher operation and maintenance expenses, lower sales volumes due to weather and increased depreciation expenses.         

Pennsylvania Regulated: Adjusted earnings fell 19% from the prior-year quarter’s figure to 17 cents. The results were affected by higher operation and maintenance expenses and increased depreciation expenses as well as the effect of share dilution.

Corporate and Other: The segment incurred a loss of 5 cents in the quarter compared with a loss of 3 cents in the prior-year quarter.

Operational Highlights

PPL Corp’s total operating expenses increased 1.8% year over year to $ 1,298 million in the quarter.

The company generated operating income of $781 million, lower than $851 million in the prior-year quarter.

Interest expenses inched up 0.8% to $241 million from the year-ago quarter’s tally of $239 million.

Financial Position

As of Mar 31, 2019, the company had cash and cash equivalents of $518 million compared with $621 million as of Dec 31, 2018.

Long-term debt (excluding debts due within a year) was $21,114 million as of Mar 31, 2019 compared with $20,069 million as of Dec 31, 2018.

Net cash flow from operating activities in first quarter was $474 million compared with $566 million in year-ago quarter.

Guidance

PPL Corp reaffirmed guidance for 2019 EPS from ongoing operations in the range of $2.30-$2.50 with a midpoint of $2.40, which is lower than the Zacks Consensus Estimate of $2.43.

Zacks Rank

Currently, PPL Corp carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Utility Releases

DTE Energy Company (DTE - Free Report) delivered first-quarter 2019 operating earnings per share of $2.05, which beat the Zacks Consensus Estimate of $1.95 by 5.1%.

NextEra Energy, Inc (NEE - Free Report) generated first-quarter 2019 adjusted earnings of $2.20 per share, which beat the Zacks Consensus Estimate of $2.01 by 9.4%.

FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.

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