What Should We Expect From PPL Corporation’s (PPL) Earnings In Next 12 Months?
PPL Corporation (NYSE:PPL) is predicted to grow its earnings per share by a robust double-digit 12.04% over the next three years. With the recent EPS being $2.213, expected growth will push the upcoming EPS to $2.48. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for PPL
What can we expect from PPL Corporation (NYSE:PPL) in the future?
PPL is covered by 10 analysts who by consensus are expecting earnings to increase from today’s level of $2.213 to $2.48 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 12.04% over the next few years, which is an optimistic outlook in the near term. During the same time revenue is predicted to grow from $7,353M to $8,449M and profits (net income) are predicted to slightly grow from $1,511M to $1,693M in the next couple of years, growing by 12.04%. At this level of revenue and profit, margins are predicted to be extremely healthy as well.
Is this similar growth to the past?
The past can be an insightful indicator for future performance for a stock. We can determine whether this level of expected growth indicates a change in tides or if the company continues to struggle reaching higher growth. PPL exhibits a slow and steady change as it delivered negative growth of -3.72% over the last five years, which is expected to turn positive according to analysts’ forecasts. This could indicate a relatively fruitful turnaround, which may give current shareholders a glimpse of hope.
Next Steps:
For PPL, there are three important aspects you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is PPL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether PPL is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of PPL? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
