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PPL's Q4 Earnings Lag Estimates, Revenues Increase Y/Y

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PPL Corporation (PPL - Free Report) reported fourth-quarter 2024 operating earnings per share (EPS) of 34 cents, which missed the Zacks Consensus Estimate of 37 cents by 8.1%. In the year-ago quarter, earnings were 40 cents per share.

On a GAAP basis, PPL recorded EPS of 24 cents compared with 15 cents in the year-ago quarter.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

PPL’s Revenues

Total revenues of $2.21 billion surpassed the Zacks Consensus Estimate of $2.09 billion by 5.6%. The top line increased 8.9% from the year-ago figure of $2.03 billion.

Full-year 2024 revenues totaled $8.46 billion compared with $8.31 billion last year.

 

PPL Corporation Price, Consensus and EPS Surprise

PPL Corporation Price, Consensus and EPS Surprise

PPL Corporation price-consensus-eps-surprise-chart | PPL Corporation Quote

Highlights of PPL’s Q4 Release

In the fourth quarter, the company sold 15,859 gigawatt hours of electricity to its customers in Pennsylvania and Kentucky, reflecting 1% year-over-year growth.

Total operating expenses were $1.83 billion, up 11.5% from the year-ago quarter’s $1.64 billion. This was due to an increase in fuel, energy purchases and other operation and maintenance expenses.

Operating income totaled $377 million, down 3.3% from the year-ago figure of $390 million.

Interest expenses amounted to $189 million, up 9.9% from $172 million in the corresponding period of 2023.

PPL’s Segmental Updates

Pennsylvania Regulated: Adjusted EPS was 20 cents, flat year over year.

Kentucky Regulated: Adjusted EPS was 17 cents, flat year over year.

Rhode Island Regulated: Adjusted EPS was 2 cents, down 60% from the year-ago figure of 5 cents. Lower distribution and transmission revenues and other factors affected earnings.

Corporate and Other: The segment incurred a loss of 5 cents per share compared with a loss of 2 cents in the year-ago quarter.

PPL’s Financial Position

As of Dec. 31, 2024, PPL had cash and cash equivalents of $306 million compared with $331 million as of Dec. 31, 2023.

The long-term debt was $15.9 billion as of Dec. 31, 2024, compared with $14.6 billion as of Dec. 31, 2023.

Net cash provided by operating activities in 2024 was $2.34 billion compared with $1.76 billion last year.

PPL’s Guidance

PPL expects 2025 earnings to be in the range of $1.75-$1.87 per share. The Zacks Consensus Estimate is pegged at $1.83 per share, higher than the midpoint of the company’s guided range. The company reaffirmed its long-term annual earnings growth rate in the range of 6-8% through 2028.

It raised its guidance for planned infrastructure investments to $20 billion for 2025-2028 compared to the prior plan of $14.3 billion for 2024-2027.

Management continues to expects O&M savings to be at least $150 million by 2025.

PPL’s 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.

Upcoming Releases

IDACORP (IDA - Free Report) is scheduled to report fourth-quarter results on Feb. 20, before market open. The Zacks Consensus Estimate for earnings is pegged at 63 cents per share, which suggests a year-over-year increase of 3.3%.

IDA’s long-term (three to five years) earnings growth rate is 8.35%. The Zacks Consensus Estimate for 2024 earnings is pinned at $5.42 per share, which implies a year-over-year improvement of 5.5%.

Alliant Energy (LNT - Free Report) is slated to report fourth-quarter results on Feb. 20, after market close. The Zacks Consensus Estimate for earnings is pegged at 68 cents per share.

LNT’s long-term earnings growth rate is 6.75%. The Zacks Consensus Estimate for fourth-quarter sales is pinned at $1.20 billion.

Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to report fourth-quarter results on Feb. 25, before market open. The Zacks Consensus Estimate for earnings is pegged at a loss of 15 cents per share.

PNW’s long-term earnings growth rate is 5.58%. The Zacks Consensus Estimate for 2024 earnings is pinned at $5.13 per share, which implies a year-over-year improvement of 16.3%.

 


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