We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PPL Corporation's Focus on Capital Investments Bodes Well
Read MoreHide Full Article
PPL Corporation’s (PPL - Free Report) investment plan to strengthen infrastructure, focus on cleaner energy generation and growth in domestic operation are tailwinds.
The Zacks Consensus Estimate for the company’s 2020 earnings is pegged at $2.42 per share while the same for revenues stands at $8.05 billion. The bottom-line estimate suggests a 1.22% decline from the year-ago reported figure though the top-line projection calls for a 3.67% rise from the prior-year reported number. The company delivered a trailing four-quarter positive earnings surprise of 1.05%, on average.
What’s Driving the Stock?
PPL Corporation’s capital investment plan primarily focuses on infrastructure-construction projects for generation, transmission and distribution. The company expects to invest nearly $14 billion through the 2020-2024 time frame, which will expand the rate base from $29.9 billion in 2020 to $34.2 billion in 2024, seeing a CAGR of 4%.
Moreover, PPL Corporation has a target set to reduce 80% carbon emission by 2050 from 2010-levels by introducing carbon capture technology and adding more renewable sources to its energy-generation folio.
Further, the company re-established its hedge levels to shield itself from any near-term decline in the Great Britain Pound (GBP). Remarkably, as of Mar 31, 2020, PPL Corporation hedged 86% of its foreign currency earnings at a rate of $1.55 per GBP, on average, for the remainder of 2020 and 8% for 2021 at a rate of $1.32 per GBP, on average. These hedges will help the company perform in the expected lines even if the exchange rate falls below the current level.
PPL Corporation boasts strong liquidity and will be able to defer capital spending if necessary. The company had liquidity worth $4.7 billion as of Apr, 30, 2020, which is sufficient to meet its near-term debt obligation. Also, its long-term debt amounted to $20,670 million in the first quarter, down from $20,721 million in the fourth quarter of 2019.
However, unplanned outages at power plants as well as stringent laws and regulations outside the United States may impact PPL Corporation’s revenues negatively.
Zacks Rank & Price Performance
In the past three months, shares of the company have gained 12.5% outperforming the industry’s rise of 5.5%. The stock currently carries a Zacks Rank #2 (Buy).
CMS Energy pulled off average positive earnings surprise of 0.75% in the last four quarters. The Zacks Consensus Estimate for 2020 earnings has moved 0.77% north in the past 30 days.
DTE Energy’s earnings are expected to grow 5.53% in the long term. The Zacks Consensus Estimate for 2020 earnings has been revised 0.15%upward in the past 30 days.
NextEra Energy came up with average positive earnings surprise of 2.39% in the previous four quarters. The Zacks Consensus Estimate for current-year earnings has been unchanged in the past 30 days.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
PPL Corporation's Focus on Capital Investments Bodes Well
PPL Corporation’s (PPL - Free Report) investment plan to strengthen infrastructure, focus on cleaner energy generation and growth in domestic operation are tailwinds.
The Zacks Consensus Estimate for the company’s 2020 earnings is pegged at $2.42 per share while the same for revenues stands at $8.05 billion. The bottom-line estimate suggests a 1.22% decline from the year-ago reported figure though the top-line projection calls for a 3.67% rise from the prior-year reported number. The company delivered a trailing four-quarter positive earnings surprise of 1.05%, on average.
What’s Driving the Stock?
PPL Corporation’s capital investment plan primarily focuses on infrastructure-construction projects for generation, transmission and distribution. The company expects to invest nearly $14 billion through the 2020-2024 time frame, which will expand the rate base from $29.9 billion in 2020 to $34.2 billion in 2024, seeing a CAGR of 4%.
Moreover, PPL Corporation has a target set to reduce 80% carbon emission by 2050 from 2010-levels by introducing carbon capture technology and adding more renewable sources to its energy-generation folio.
Further, the company re-established its hedge levels to shield itself from any near-term decline in the Great Britain Pound (GBP). Remarkably, as of Mar 31, 2020, PPL Corporation hedged 86% of its foreign currency earnings at a rate of $1.55 per GBP, on average, for the remainder of 2020 and 8% for 2021 at a rate of $1.32 per GBP, on average. These hedges will help the company perform in the expected lines even if the exchange rate falls below the current level.
PPL Corporation boasts strong liquidity and will be able to defer capital spending if necessary. The company had liquidity worth $4.7 billion as of Apr, 30, 2020, which is sufficient to meet its near-term debt obligation. Also, its long-term debt amounted to $20,670 million in the first quarter, down from $20,721 million in the fourth quarter of 2019.
However, unplanned outages at power plants as well as stringent laws and regulations outside the United States may impact PPL Corporation’s revenues negatively.
Zacks Rank & Price Performance
In the past three months, shares of the company have gained 12.5% outperforming the industry’s rise of 5.5%. The stock currently carries a Zacks Rank #2 (Buy).
Other Key Picks
A few other top-ranked stocks in the same industry are CMS Energy Corp. (CMS - Free Report) , DTE Energy Co. (DTE - Free Report) and NextEra Energy, Inc. (NEE - Free Report) , which carry the same Zacks Rank as PPL Corporation. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CMS Energy pulled off average positive earnings surprise of 0.75% in the last four quarters. The Zacks Consensus Estimate for 2020 earnings has moved 0.77% north in the past 30 days.
DTE Energy’s earnings are expected to grow 5.53% in the long term. The Zacks Consensus Estimate for 2020 earnings has been revised 0.15%upward in the past 30 days.
NextEra Energy came up with average positive earnings surprise of 2.39% in the previous four quarters. The Zacks Consensus Estimate for current-year earnings has been unchanged in the past 30 days.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>