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PPL to Release Q3 Earnings: Here's What You Need to Know

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PPL Corporation (PPL - Free Report) is scheduled to release third-quarter 2023 results on Nov 2, before market open. The company delivered a negative earnings surprise of 9.4% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

PPL’s third-quarter earnings are likely to have gained from the use of the Dynamic Line Rating technology. This helps in increasing the reliability of its electricity supply services to more than 1.4 million customers.

The company’s third-quarter earnings are also expected to have benefited from operation and maintenance savings through the company’s centralization efforts and asset optimization.

PPL’s quarterly results are likely to benefit from warmer weather conditions. This is expected to have increased the demand for the company’s services.

However, higher interest expenses are expected to have offset some positives in the to-be-reported quarter.

Q3 Expectations

The Zacks Consensus Estimate for earnings is pegged at 45 cents per share, indicating a year-over-year increase of 9.8%. The consensus mark for revenues is pinned at $2.2 billion, implying a year-over-year improvement of 2.9%.

The Zacks Consensus Estimate for total electricity delivered in Pennsylvania is pegged at 9,452 gigawatt-hour (GWh), up 16.9% from the previous quarter’s reported figure. The Zacks Consensus Estimate for total electricity delivered in Kentucky is pinned at 6,658 GWh, up 0.6% from the previous quarter’s reported number.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for PPL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.  
 

PPL Corporation Price and EPS Surprise

PPL Corporation Price and EPS Surprise

PPL Corporation price-eps-surprise | PPL Corporation Quote

Earnings ESP: The company’s Earnings ESP is -5.62%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, PPL carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same industry as these have the right combination of elements to post an earnings beat this reporting cycle.

Consolidated Edison (ED - Free Report) is likely to report an earnings beat when it announces third-quarter results on Nov 2, after market close. It has an Earnings ESP of +3.93% and a Zacks Rank #2 at present.

ED’s long-term (three to five years) earnings growth rate is 2%. The Zacks Consensus Estimate for earnings is pegged at $1.58 per share.

TransAlta (TAC - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov 7, before market open. It has an Earnings ESP of +15.26% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 88.2%. The consensus mark for 2023 earnings is pinned at $1.44 per share, implying a year-over-year improvement of 1,900%.

Ameren Corporation (AEE - Free Report) is expected to come up with an earnings beat when it reports third-quarter results on Nov 8, after market close. It has an Earnings ESP of +0.22% and a Zacks Rank #3 at present.

AEE’s long-term earnings growth rate is 6.61%. The Zacks Consensus Estimate for earnings is pegged at $1.8 per share, indicating a year-over-year increase of 3.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 


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