PPL Corporation (PPL), headquartered in Allentown, Pennsylvania, is an energy company that provides electricity and natural gas to more than 3.5 million customers in the U.S. Valued at $21.39 billion by market cap, the company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island. It also delivers natural gas to customers in Kentucky and Rhode Island and generates electricity from power plants in Kentucky. The electricity and natural gas utility is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Friday, Aug. 2.
Ahead of the event, analysts expect PPL to report a profit of $0.31 per share on a diluted basis, up 6.9% from $0.29 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing on two other occasions.
For fiscal 2024, analysts expect PPL to report EPS of $1.71, up 6.9% from $1.60 in fiscal 2023.
PPL stock has underperformed the S&P 500’s ($SPX) 16.7% gains on a YTD basis, with shares up 7% during this period. Similarly, it underperformed the S&P 500 Utilities Sector SPDR’s (XLU) 11.6% gains over the same time frame.
On May 1, PPL reported its Q1 results. Its adjusted earnings rose 14.2% year over year to $402 million, and its adjusted EPS increased 12.5% year over year to $0.54, beating the consensus estimates of $0.52. The company’s operating revenues declined 4.6% year over year to $2.30 billion. PPL’s CEO Vincent Sorgi said that the company was on track to complete over $3 billion in infrastructure improvements this year to modernize the grid and strengthen grid resilience.
It reaffirmed the 2024 EPS forecast range between $1.63 and $1.75, with a midpoint of $1.69. Moreover, it reaffirmed annual EPS and dividend growth projections of 6% to 8% through at least 2027. PPL shares closed up nearly 2% on the day the results were released and have been on an uptrend since then.
Analysts’ consensus opinion on PPL stock is bullish, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, seven advise a “Strong Buy” rating, two have a “Moderate Buy” rating, and four recommend a “Hold.” The average analyst price target for PPL is $29.75, indicating a 2.6% potential upside from the current levels.
On the date of publication, Dipanjan Banchur 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.
