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PPL Corp (PPL) to Post Q2 Earnings: Is a Beat in Store?

Zacks Equity Research

PPL Corporation PPL is set to release second-quarter 2019 results on Aug 6, before market open. In the last reported quarter, the company delivered negative earnings surprise of 4.11%.

What Does the Zacks Model Say?

Our proven model shows that PPL Corp is likely to beat estimates as it has the right combination of two key ingredients. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.

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

Earnings ESP: The company has Earnings ESP of +1.18%. 

Zacks Rank: PPL Corporation currently carries a Zacks Rank #3. The combination of a Zacks Rank #3 and +1.18% ESP makes us confident of a beat in the quarter to be reported.

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

PPL Corporation Price, Consensus and EPS Surprise

 

PPL Corporation Price, Consensus and EPS Surprise

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

 

Factors to Consider

PPL Corporation is continuously investing in infrastructure to improve service quality and is on track to spend $3.3 billion in 2019.The ability of the company to recover nearly 80% of its investments within 12 months is likely to boost second-quarter earnings. The Kentucky Public Service Commission authorized the combined revenue increase of $187 million for Kentucky Utilities and Louisville Gas and Electric. New rates that are effective from May 1 are expected to boost results in the quarter to be reported.

We believe that investments and better service quality will make positive impact on the upcoming quarterly results.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter earnings is pegged at 56 cents, indicating rise of 1.82% year over year.

Other Stocks to Consider

Investors can consider other stocks from the same industry, which also have the right combination of elements to beat estimates in the to-be-reported quarter.

Pinnacle West Capital Corporation PNW has an Earnings ESP of +0.06% and a Zacks Rank #3. The company is expected to release second-quarter 2019 results on Aug 8.

Black Hills Corporation BKH has an Earnings ESP of +0.75% and a Zacks Rank #3. The company is scheduled to report second-quarter 2019 results on Aug 5.

The Southern Company SO has an Earnings ESP of +0.46% and a Zacks Rank #3. The company is expected to release second-quarter 2019 results on Jul 31.

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PPL Corporation (PPL) : Free Stock Analysis Report
 
Southern Company (The) (SO) : Free Stock Analysis Report
 
Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
 
Black Hills Corporation (BKH) : Free Stock Analysis Report
 
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