PPL Corporation Readies for Q3 Earnings Amidst Mixed Market Performance
Analysts Predict Slight Decrease in Profits Ahead of Earnings Release
PPL Corporation (PPL), based in Allentown, Pennsylvania, is a utility holding company that provides electricity and natural gas services across the United States. Currently, its market capitalization is $24.1 billion. The company will publish its Q3 earnings report before the market opens on Friday, Nov. 1.
Expectations from analysts indicate that PPL will report a profit of $0.42 per share, which is a decline of 2.3% compared to $0.43 reported in the same quarter last year. Notably, PPL has outperformed Wall Street’s earnings predictions in three out of the past four quarters, with one quarter falling short of expectations.
In its previous quarter, PPL reported adjusted earnings of $0.38 per share, exceeding analysts’ forecasts by 22.6%. The company attributed this earnings success to solid operational performance and effective cost management strategies.
Looking ahead to fiscal 2024, analysts project that PPL will generate $1.72 in earnings per share (EPS), which marks a 7.5% growth from $1.60 in fiscal 2023.
Year-to-date, PPL stock is up 20.6%, but it has not kept pace with the broader S&P 500 Index’s 22.7% gains or the Utilities Select Sector SPDR Fund’s (XLU) 28.4% increase over the same period.
After announcing its Q2 earnings results on Aug. 2, PPL stock closed up over 1%. The company reported revenues of $1.88 billion, reflecting a year-over-year increase of 3.2%. This growth stemmed from a notable 19.1% drop in energy purchase expenses, which resulted in decreased operating costs and a 4% rise in operating margin, bringing it to 20.7%.
PPL emphasized its commitment to operational efficiencies and set ambitious infrastructure investment targets totaling $14.3 billion through 2027.
The overall view on PPL stock is cautiously optimistic. The consensus rating is a “Moderate Buy,” with 14 analysts covering the stock. Among these, eight analysts recommend a “Strong Buy,” two suggest a “Moderate Buy,” and four rate it as a “Hold.”
PPL’s average analyst price target stands at $34, indicating a potential upside of 4% from current levels.
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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.
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