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PPL's Q1 Earnings Beat Estimates on Strong Electricity Sales
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PPL Corporation (PPL - Free Report) reported first-quarter 2024 operating earnings per share (EPS) of 54 cents, which surpassed the Zacks Consensus Estimate of 52 cents by 3.8%. The bottom line increased 12.5% from the year-ago quarter’s figure of 48 cents.
On a GAAP basis, PPL recorded EPS of 42 cents compared with 39 cents in the year-ago quarter. The difference between GAAP and operating earnings was due one-time items like 11 cents expenses relating to acquisition integration and 1 cent cost relating to PPL Electric billing issue.
Revenues
Total revenues of $2.3 billion missed the Zacks Consensus Estimate of $2.43 billion by 5.3%. The top line declined 4.6% from the year-ago quarter’s figure of $2.4 billion.
Total operating expenses were $1.76 billion, down 8.3% from the year-ago quarter’s $1.92 billion. This decrease was due to a fall in energy purchase expenses and taxes other than income tax.
The operating income totaled $545 million, up 9.4% from the year-ago quarter’s figure of $498 million.
Interest expense was $179 million, up 9.1% from $164 million in first-quarter 2023.
Segmental Updates
Pennsylvania Regulated: Adjusted EPS was 25 cents, up 13.6% from the year-ago quarter’s figure of 22 cents. This unit recorded total electricity sales of 9,627 gigawatt-hour (GWh), up 2% year over year.
Kentucky Regulated: Adjusted EPS was 22 cents, up 15.8% from the year-ago quarter’s level of 19 cents. This segment recorded total electricity sales of 7,621 GWh, up 7.6% year over year.
Rhode Island Regulated: Adjusted EPS was 11 cents per share, up 10% year over year.
Corporate and Other: The segment incurred a loss of 4 cents per share compared with 3 cents in the year-ago quarter.
Financial Position
As of Mar 31, 2024, PPL had cash and cash equivalents of $276 million compared with $331 million as of Dec 31, 2023.
The long-term debt was $15.8 billion as of Mar 31, 2024, compared with $14.6 billion as of Dec 31, 2023.
Net cash provided by operating activities in the first three months of 2024 was $282 million compared with $430 million in the year-ago period.
Guidance
PPL reiterated its 2024 EPS guidance of $1.63-$1.75. The Zacks Consensus Estimate is pegged at $1.70, which is a tad higher than the midpoint of the company’s guided range. PPL reaffirmed long-term annual earnings growth rate in the range of 6-8% through 2027.
The company restated its capital expenditure of $14.3 billion for 2024 to 2027. PPL plans to invest $3 billion in 2024 to strengthen its infrastructure.
Management expects O&M savings of at least $175 million by 2026. It is on track to deliver O&M savings in the range of $120-$130 million by the end of 2024.
Exelon Corporation (EXC - Free Report) is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for EPS is pegged at 70 cents.
EXC’s long-term (three-to-five years) earnings growth rate is 5.69%. It delivered an average earnings surprise of 2.6% in the last four quarters.
Ameren Corporation (AEE - Free Report) is slated to report first-quarter results on May 2, after market close. The Zacks Consensus Estimate for EPS is pegged at 61 cents.
AEE’s long-term earnings growth rate is 6.48%. It delivered an average earnings surprise of 6% in the last four quarters.
Dominion Energy (D - Free Report) is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for EPS is pegged at 51 cents.
D’s long-term earnings growth rate is 5.44%. It delivered negative earnings surprise of 4.3%, on average, in the last four quarters.
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PPL's Q1 Earnings Beat Estimates on Strong Electricity Sales
PPL Corporation (PPL - Free Report) reported first-quarter 2024 operating earnings per share (EPS) of 54 cents, which surpassed the Zacks Consensus Estimate of 52 cents by 3.8%. The bottom line increased 12.5% from the year-ago quarter’s figure of 48 cents.
On a GAAP basis, PPL recorded EPS of 42 cents compared with 39 cents in the year-ago quarter. The difference between GAAP and operating earnings was due one-time items like 11 cents expenses relating to acquisition integration and 1 cent cost relating to PPL Electric billing issue.
Revenues
Total revenues of $2.3 billion missed the Zacks Consensus Estimate of $2.43 billion by 5.3%. The top line declined 4.6% from the year-ago quarter’s figure of $2.4 billion.
PPL Corporation Price, Consensus and EPS Surprise
PPL Corporation price-consensus-eps-surprise-chart | PPL Corporation Quote
Highlights of the Release
Total operating expenses were $1.76 billion, down 8.3% from the year-ago quarter’s $1.92 billion. This decrease was due to a fall in energy purchase expenses and taxes other than income tax.
The operating income totaled $545 million, up 9.4% from the year-ago quarter’s figure of $498 million.
Interest expense was $179 million, up 9.1% from $164 million in first-quarter 2023.
Segmental Updates
Pennsylvania Regulated: Adjusted EPS was 25 cents, up 13.6% from the year-ago quarter’s figure of 22 cents. This unit recorded total electricity sales of 9,627 gigawatt-hour (GWh), up 2% year over year.
Kentucky Regulated: Adjusted EPS was 22 cents, up 15.8% from the year-ago quarter’s level of 19 cents. This segment recorded total electricity sales of 7,621 GWh, up 7.6% year over year.
Rhode Island Regulated: Adjusted EPS was 11 cents per share, up 10% year over year.
Corporate and Other: The segment incurred a loss of 4 cents per share compared with 3 cents in the year-ago quarter.
Financial Position
As of Mar 31, 2024, PPL had cash and cash equivalents of $276 million compared with $331 million as of Dec 31, 2023.
The long-term debt was $15.8 billion as of Mar 31, 2024, compared with $14.6 billion as of Dec 31, 2023.
Net cash provided by operating activities in the first three months of 2024 was $282 million compared with $430 million in the year-ago period.
Guidance
PPL reiterated its 2024 EPS guidance of $1.63-$1.75. The Zacks Consensus Estimate is pegged at $1.70, which is a tad higher than the midpoint of the company’s guided range. PPL reaffirmed long-term annual earnings growth rate in the range of 6-8% through 2027.
The company restated its capital expenditure of $14.3 billion for 2024 to 2027. PPL plans to invest $3 billion in 2024 to strengthen its infrastructure.
Management expects O&M savings of at least $175 million by 2026. It is on track to deliver O&M savings in the range of $120-$130 million by the end of 2024.
Zacks Rank
PPL currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Exelon Corporation (EXC - Free Report) is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for EPS is pegged at 70 cents.
EXC’s long-term (three-to-five years) earnings growth rate is 5.69%. It delivered an average earnings surprise of 2.6% in the last four quarters.
Ameren Corporation (AEE - Free Report) is slated to report first-quarter results on May 2, after market close. The Zacks Consensus Estimate for EPS is pegged at 61 cents.
AEE’s long-term earnings growth rate is 6.48%. It delivered an average earnings surprise of 6% in the last four quarters.
Dominion Energy (D - Free Report) is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for EPS is pegged at 51 cents.
D’s long-term earnings growth rate is 5.44%. It delivered negative earnings surprise of 4.3%, on average, in the last four quarters.