We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is PPL (PPL) Up 23.7% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for PPL (PPL - Free Report) . Shares have added about 23.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PPL due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
PPL Corp Q1 Earnings Lag Estimates, Revenues Down Y/Y
PPL Corporation delivered first-quarter 2020 adjusted earnings per share (EPS) of 67 cents, which missed the Zacks Consensus Estimate of 72 cents by 7%.
The figure declined 4% year over year, primarily due to share dilution and lower sales volumes stemming from unfavorable weather in the United States.
On a GAAP basis, the company generated EPS of 72 cents compared with 64 cents in the year-ago quarter.
Total Revenues
PPL Corp posted revenues of $2,054 million in the first quarter, which declined 1.2% year over year.
Segment Results
U.K. Regulated: Adjusted earnings fell 7.1% from the prior-year quarter’s tally to 39 cents per share.
Kentucky Regulated: Adjusted earnings were 16 cents, in line with the year-ago quarter’s figure.
Pennsylvania Regulated: Adjusted earnings declined 5.8% from the prior-year quarter’s tally to 16 cents.
Corporate and Other: The segment reported a loss of 4 cents in the quarter, which was narrower than a loss of 5 cents in the prior-year quarter.
Operational Highlights
PPL Corp’s total operating expenses fell 4.7% year over year to $ 1,237 million in the reported quarter.
The company reported operating income of $817 million, up 4.6% $781 million in the prior-year quarter.
Interest expenses moved up 3% to $248 million from the year-ago quarter’s tally of $241 million.
Financial Position
As of Mar 31, 2020, the company had cash and cash equivalents of $915 million compared with $815 million as of Dec 31, 2019.
Long-term debt (excluding debts due within a year) was $20,670 million as of Mar 31 compared with $20,721 million at the end of 2019.
Net cash flow from operating activities at the end of the first quarter of 2020 was $692 million compared with $474 million at the end of the first quarter of 2019.
Guidance
PPL Corp maintained its guidance for 2020 EPS from ongoing operations in the range of $2.40-$2.60 with a midpoint of $2.50, which is higher than the Zacks Consensus Estimate of $2.43.
The company also maintained its 2021 EPS guidance in the range of $2.40 -$2.60 with a midpoint of $2.50, higher than the Zacks Consensus Estimate of $2.44.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
VGM Scores
At this time, PPL has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
PPL has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is PPL (PPL) Up 23.7% Since Last Earnings Report?
A month has gone by since the last earnings report for PPL (PPL - Free Report) . Shares have added about 23.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PPL due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
PPL Corp Q1 Earnings Lag Estimates, Revenues Down Y/Y
PPL Corporation delivered first-quarter 2020 adjusted earnings per share (EPS) of 67 cents, which missed the Zacks Consensus Estimate of 72 cents by 7%.
The figure declined 4% year over year, primarily due to share dilution and lower sales volumes stemming from unfavorable weather in the United States.
On a GAAP basis, the company generated EPS of 72 cents compared with 64 cents in the year-ago quarter.
Total Revenues
PPL Corp posted revenues of $2,054 million in the first quarter, which declined 1.2% year over year.
Segment Results
U.K. Regulated: Adjusted earnings fell 7.1% from the prior-year quarter’s tally to 39 cents per share.
Kentucky Regulated: Adjusted earnings were 16 cents, in line with the year-ago quarter’s figure.
Pennsylvania Regulated: Adjusted earnings declined 5.8% from the prior-year quarter’s tally to 16 cents.
Corporate and Other: The segment reported a loss of 4 cents in the quarter, which was narrower than a loss of 5 cents in the prior-year quarter.
Operational Highlights
PPL Corp’s total operating expenses fell 4.7% year over year to $ 1,237 million in the reported quarter.
The company reported operating income of $817 million, up 4.6% $781 million in the prior-year quarter.
Interest expenses moved up 3% to $248 million from the year-ago quarter’s tally of $241 million.
Financial Position
As of Mar 31, 2020, the company had cash and cash equivalents of $915 million compared with $815 million as of Dec 31, 2019.
Long-term debt (excluding debts due within a year) was $20,670 million as of Mar 31 compared with $20,721 million at the end of 2019.
Net cash flow from operating activities at the end of the first quarter of 2020 was $692 million compared with $474 million at the end of the first quarter of 2019.
Guidance
PPL Corp maintained its guidance for 2020 EPS from ongoing operations in the range of $2.40-$2.60 with a midpoint of $2.50, which is higher than the Zacks Consensus Estimate of $2.43.
The company also maintained its 2021 EPS guidance in the range of $2.40 -$2.60 with a midpoint of $2.50, higher than the Zacks Consensus Estimate of $2.44.
How Have Estimates Been Moving Since Then?
Fresh estimates followed a downward path over the past two months.
VGM Scores
At this time, PPL has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
PPL has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.