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PPL Corp. (PPL) Q3 Earnings Miss Estimates, Revenues Up Y/Y

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PPL Corporation (PPL - Free Report) reported third-quarter 2021 adjusted earnings per share of 36 cents, which missed the Zacks Consensus Estimate of 37 cents by 2.7%.

On a GAAP basis, the company recorded earnings per share of 27 cents compared with 37 cents earned in the year-ago quarter.

Revenues

Revenues of $1,512 million for the third quarter improved 8% year over year.

Operational Highlights

Total operating expenses rose 12.3% year over year to $1,081 million for the reported quarter.

It reported operating income of $431 million, down 1.4% from the prior-year level.

Interest expenses were up 13.7% from the year-ago reading to $183 million.

The company is on course to close the acquisition of Narragansett Electric by March 2022. It will utilize the sale proceeds from the U.K. business to reduce outstanding debt worth $3.5 billion, fund $3.8 billion for the acquisition of Narragansett Electric and utilize $500 million to repurchase shares.

Segment Update

Kentucky Regulated: Adjusted earnings increased 23.5% from the prior-year quarter to 21 cents per share.

Pennsylvania Regulated: Adjusted earnings were 16 cents per share, down 5.9% from the year-ago figure.  

Corporate and Other: The segment incurred a loss of a penny per share for the quarter, narrower than the prior-year loss of 4 cents.

Financial Position

As of Sep 30, 2021, the company had cash and cash equivalents of $4,767 million compared with $442 million on Dec 31, 2020.

Long-term debt was $10,665 million as of Sep 30, 2021 compared with $13,615 million as of Dec 31, 2020.

Net cash provided by operating activities in the first nine months of 2021 was $1,978 million compared with $2,247 million in the comparable period of 2020.

It announced an update to its planned share repurchase program, increasing targeted repurchases to nearly $1 billion by year-end. Through Oct 31, the company completed $550 million of share repurchases.

Zacks Rank

Currently, PPL Corp. carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

FirstEnergy Corporation (FE - Free Report) came up with third-quarter 2021 operating earnings of 82 cents per share, surpassing the Zacks Consensus Estimate of 81 cents by 1.2%.

NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2021 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 72 cents by 4.2%.

DTE Energy Company (DTE - Free Report) reported third-quarter 2021 operating EPS of $1.72, which missed the Zacks Consensus Estimate of $1.83 by 6%.

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