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What's in Store for PPL Corp (PPL) This Earnings Season?

We expect PPL Corporation PPL to come out with an earnings surprise when it reports first-quarter 2018 earnings before the market opens on May 3. The utility delivered positive earnings surprises in three of the last four quarters with a positive average surprise of 6.06%

Why a Likely Positive Surprise

Our proven model shows that PPL Corporation is likely to beat estimates this quarter as it possesses the key components. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.

Zacks ESP: PPL Corporation has an Earnings ESP of +0.63%.

PPL Corporation Price and EPS Surprise

PPL Corporation Price and EPS Surprise | PPL Corporation Quote

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

Zacks Rank: PPL Corporation has a Zacks Rank #3. The combination of a favorable Zacks Rank and positive ESP makes us reasonably confident of earnings beat this season.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing a negative estimate revisions' momentum.

Factors to Consider

PPL Corporation expects to benefit from higher transmission earnings from its Pennsylvania Regulated Segment. In Pennsylvania, the company completed significant transmission projects, including the first phase of the $160 million Greater Scranton Transmission Reliability Project, which is going to a have positive impact on earnings. However, higher financing costs are expected to offset the gains.

The company’s higher cash repatriation from its U.K. segment is going to have a positive impact on its overall performance.

The Zacks Consensus Estimate for first-quarter total revenues has increased 1.64% to $1,983 million from same period last year. Also, the Zacks Consensus Estimate projects earnings of 66 cents compared with 62 cents in the year-ago quarter, a rise of 6.45%.

Other Stocks to Consider

In addition to PPL Corporation, here are some companies from the industry that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this quarter:

IDACORP, Inc. IDA has an Earnings ESP of +3.55%. It carries a Zacks Rank #2 and is expected to report first-quarter 2018 results on May 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ameren Corporation AEE has an Earnings ESP of +1.45% and a Zacks Rank #3. The company is expected to release first-quarter 2018 results on May 9.

Black Hill Corporation BKH has an Earnings ESP of +0.54%. It carries a Zacks Rank #3 and is expected to report first-quarter 2018 results on May 3.

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