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PPL's Q2 Earnings Top Estimates on Higher Electricity Sales
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PPL Corporation (PPL - Free Report) reported second-quarter 2024 operating earnings per share (EPS) of 38 cents, which surpassed the Zacks Consensus Estimate of 31 cents by 22.6%. The bottom line increased 31% from the year-ago quarter’s figure of 29 cents per share.
On a GAAP basis, PPL recorded EPS of 26 cents compared with 15 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to a one-time item like 12 cents expenses relating to acquisition integration.
Revenues
Total revenues of $1.88 billion missed the Zacks Consensus Estimate of $1.91 billion by 1.7%. The top line increased 3.2% from the year-ago quarter’s figure of $1.82 billion.
In the second quarter, the company sold 15,875 gigawatt hours of electricity to its customers in Pennsylvania and Kentucky, which reflects year-over-year growth of 7.2%.
Total operating expenses were $1.49 billion, down 1.8% from the year-ago quarter’s $1.52 billion. This decrease was attributed to a fall in energy purchase expenses.
Operating income totaled $390 million, up 27.9% from the year-ago quarter’s figure of $305 million.
Interest expense was $182 million, up 10.3% from $165 million in second-quarter 2023.
Segmental Updates
Pennsylvania Regulated: Adjusted EPS was 21 cents, up 40% from the year-ago quarter’s figure of 15 cents. The year-over-year increase was attributed to higher sales volumes and transmission revenues.
Kentucky Regulated: Adjusted EPS was 18 cents, up 50% from the year-ago quarter’s level of 12 cents. Factors that drove earnings included higher sales volumes, primarily attributed to weather and lower operating costs.
Rhode Island Regulated: Adjusted EPS was 1 cent, on par with the year-ago quarter. Factors that aided earnings included higher distribution revenues from capital investments, transmission revenues and interest income, partially offset by higher operating costs and property taxes.
Corporate and Other: The segment incurred a loss of 14 cents per share compared with 13 cents in the year-ago quarter.
Financial Position
As of Jun 30, 2024, PPL had cash and cash equivalents of $282 million compared with $331 million as of Dec 31, 2023.
The long-term debt was $15.8 billion as of Jun 30, 2024, compared with $14.6 billion as of Dec 31, 2023.
Net cash provided by operating activities in the first six months of 2024 was $1.04 billion compared with $0.84 billion 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 per share, which is a tad higher than $1.69, the midpoint of the company’s guided range. It 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.
Management expects O&M savings to be 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.
IDACORP, Inc. (IDA - Free Report) reported second-quarter 2024 earnings of $1.71 per share, which beat the Zacks Consensus Estimate of $1.37 by 24.8%.
IDA delivered an average earnings surprise of 10.35% in each of the last four quarters. The Zacks Consensus Estimate for 2024 earnings indicates 4.47% growth.
Alliant Energy Corporation (LNT - Free Report) reported second-quarter 2024 operating earnings of 57 cents per share, which lagged the Zacks Consensus Estimate of 71 cents by 19.7%.
LNT’s long-term (three to five years) earnings growth is pinned at 6.84%. The Zacks Consensus Estimate for 2024 earnings per share of $3.08 implies an increase of 9.22% year over year.
CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2024 adjusted earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 9.1%.
CNP’s long-term earnings growth is pegged at 7%. The Zacks Consensus Estimate for 2024 earnings per share of $1.62 indicates an increase of 8% year over year.
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PPL's Q2 Earnings Top Estimates on Higher Electricity Sales
PPL Corporation (PPL - Free Report) reported second-quarter 2024 operating earnings per share (EPS) of 38 cents, which surpassed the Zacks Consensus Estimate of 31 cents by 22.6%. The bottom line increased 31% from the year-ago quarter’s figure of 29 cents per share.
On a GAAP basis, PPL recorded EPS of 26 cents compared with 15 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to a one-time item like 12 cents expenses relating to acquisition integration.
Revenues
Total revenues of $1.88 billion missed the Zacks Consensus Estimate of $1.91 billion by 1.7%. The top line increased 3.2% from the year-ago quarter’s figure of $1.82 billion.
PPL Corporation Price, Consensus and EPS Surprise
PPL Corporation price-consensus-eps-surprise-chart | PPL Corporation Quote
Highlights of the Release
In the second quarter, the company sold 15,875 gigawatt hours of electricity to its customers in Pennsylvania and Kentucky, which reflects year-over-year growth of 7.2%.
Total operating expenses were $1.49 billion, down 1.8% from the year-ago quarter’s $1.52 billion. This decrease was attributed to a fall in energy purchase expenses.
Operating income totaled $390 million, up 27.9% from the year-ago quarter’s figure of $305 million.
Interest expense was $182 million, up 10.3% from $165 million in second-quarter 2023.
Segmental Updates
Pennsylvania Regulated: Adjusted EPS was 21 cents, up 40% from the year-ago quarter’s figure of 15 cents. The year-over-year increase was attributed to higher sales volumes and transmission revenues.
Kentucky Regulated: Adjusted EPS was 18 cents, up 50% from the year-ago quarter’s level of 12 cents. Factors that drove earnings included higher sales volumes, primarily attributed to weather and lower operating costs.
Rhode Island Regulated: Adjusted EPS was 1 cent, on par with the year-ago quarter. Factors that aided earnings included higher distribution revenues from capital investments, transmission revenues and interest income, partially offset by higher operating costs and property taxes.
Corporate and Other: The segment incurred a loss of 14 cents per share compared with 13 cents in the year-ago quarter.
Financial Position
As of Jun 30, 2024, PPL had cash and cash equivalents of $282 million compared with $331 million as of Dec 31, 2023.
The long-term debt was $15.8 billion as of Jun 30, 2024, compared with $14.6 billion as of Dec 31, 2023.
Net cash provided by operating activities in the first six months of 2024 was $1.04 billion compared with $0.84 billion 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 per share, which is a tad higher than $1.69, the midpoint of the company’s guided range. It 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.
Management expects O&M savings to be 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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
IDACORP, Inc. (IDA - Free Report) reported second-quarter 2024 earnings of $1.71 per share, which beat the Zacks Consensus Estimate of $1.37 by 24.8%.
IDA delivered an average earnings surprise of 10.35% in each of the last four quarters. The Zacks Consensus Estimate for 2024 earnings indicates 4.47% growth.
Alliant Energy Corporation (LNT - Free Report) reported second-quarter 2024 operating earnings of 57 cents per share, which lagged the Zacks Consensus Estimate of 71 cents by 19.7%.
LNT’s long-term (three to five years) earnings growth is pinned at 6.84%. The Zacks Consensus Estimate for 2024 earnings per share of $3.08 implies an increase of 9.22% year over year.
CenterPoint Energy, Inc. (CNP - Free Report) reported second-quarter 2024 adjusted earnings of 36 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 9.1%.
CNP’s long-term earnings growth is pegged at 7%. The Zacks Consensus Estimate for 2024 earnings per share of $1.62 indicates an increase of 8% year over year.