PPL Corporation Set to Report Q4 Earnings Amid Mixed Analyst Sentiment

PPL Corporation (PPL), with a market capitalization of $24.5 billion, is a prominent player in the energy sector, supplying electricity and natural gas to millions across the U.S. The company is organized into three main divisions: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. It will announce its fiscal Q4 earnings results on Friday, February 21.

Analysts forecast that the company will post a profit of $0.39 per share, reflecting a 2.5% decrease from the $0.40 per share reported in the same quarter last year. Notably, PPL has consistently exceeded Wall Street’s earnings expectations in the past four quarters. In the last report, it outperformed estimates by 7.7%.

Looking ahead to fiscal year 2024, analysts project PPL to achieve an EPS of $1.72, showing a growth of 7.5% from $1.60 in fiscal 2023.

PPL’s stock has increased by 27.8% over the past year, which is a bit higher than the S&P 500 Index, which gained 26.5%. However, it has lagged behind the Utilities Select Sector SPDR Fund (XLU), which saw a 30.2% rise during the same time frame.

Following a report of better-than-expected Q3 adjusted EPS of $0.42, PPL’s shares fell by 3.1% on November 1, primarily due to disappointing revenue figures. The company reported total revenues of $2.1 billion, which fell short of expectations. Rising operating costs and increased interest expenses further complicated the company’s financial performance. Investors were also concerned about the increase in long-term debt, which has now reached $16.5 billion. A narrowing of the 2024 earnings guidance to a range of $1.67 – $1.73 and a sluggish performance in the Pennsylvania Regulated sector also contributed to the drop in stock value.

Current consensus among analysts for PPL stock is cautiously optimistic, rated as “Moderate Buy.” Out of 16 analysts, there are ten “Strong Buy” recommendations, two “Moderate Buy,” and four “Holds.” This outlook is more favorable than it was three months ago when only eight analysts suggested a “Strong Buy.”

At present, PPL shares are trading below the average analyst price target of $35.62.

On the date of publication, Sohini Mondal did not have positions in any of the securities mentioned in this article. All information and data presented are for informational purposes only. For more details, please refer to the Barchart Disclosure Policy here. More news from Barchart

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