PPL Corporation (PPL), headquartered in Allentown, Pennsylvania, is a utility holding company delivering electricity and natural gas services to millions of customers across the United States. Its market cap currently stands at $24.1 billion. The company is set to release its Q3 earnings report before the market opens on Friday, Nov. 1.
Ahead of the event, analysts expect PPL to report a profit of $0.42 per share, down 2.3% from $0.43 in the year-ago quarter. The company surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
Its adjusted earnings of $0.38 per share for the last quarter surpassed the consensus estimate by 22.6%. PPL's earnings beat was driven by strong operational performance and cost management.
For fiscal 2024, analysts expect PPL to report EPS of $1.72, up 7.5% from $1.60 in fiscal 2023.
PPL stock is up 20.6% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 22.7% gains and the Utilities Select Sector SPDR Fund's (XLU) 28.4% gain over the same time frame.
PPL stock closed up over 1% after reporting its Q2 earnings results on Aug. 2. The company posted revenue of $1.88 billion, marking an increase of 3.2% year over year. This growth was supported by a significant 19.1% reduction in energy purchase expenses, contributing to a decline in total operating costs and a 4% expansion in operating margin to 20.7%.
The company highlighted progress in achieving operational efficiencies, maintaining its targeted annual savings goals, and emphasizing infrastructure investments totaling $14.3 billion through 2027.
The consensus opinion on PPL stock is moderately optimistic, with an overall “Moderate Buy” rating. Of 14 analysts covering the stock, eight advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and four indicate a “Hold.”
PPL’s average analyst price target is $34, suggesting a potential upside of 4% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
