PPL Q2 Earnings Fall Short of Estimates, Sales Rise Y/Y
PPL Corporation PPL reported second-quarter 2023 operating earnings per share (EPS) of 29 cents, which missed the Zacks Consensus Estimate of 32 cents by 9.4%. The bottom line also declined 3.3% from the year-ago quarter’s figure of 30 cents.
On a GAAP basis, PPL recorded EPS of 15 cents compared with 16 cents in the year-ago quarter.
Revenues
Total revenues of $1,823 million surpassed the Zacks Consensus Estimate of $1,725 million by 5.7%. The top line also improved 7.5% from the year-ago quarter’s recorded figure of $1,696 million.
PPL Corporation Price, Consensus and EPS Surprise
PPL Corporation price-consensus-eps-surprise-chart | PPL Corporation Quote
Highlights of the Release
Total operating expenses for the quarter were $1,518 million, up 4.5% from the year-ago quarter’s $1,453 million. This increase was due to a surge in energy purchases and higher other operation and maintenance (O&M) expenses.
The operating income totaled $305 million, up 25.5% from the year-ago quarter’s figure of $243 million.
Interest expense was $165 million, up 39.8% from the prior-year quarter’s level of $118 million.
Segmental Updates
Kentucky Regulated: Adjusted EPS was 13 cents in this segment, down 18.8% from the year-ago quarter’s figure of 16 cents. This unit recorded total electricity sales of 6,715 gigawatt-hour (GWh), down 9.9% year over year. Our model predicted the same at 7,520 GWh for the second quarter.
Pennsylvania Regulated: Adjusted earnings were 16 cents per share, down 5.9% from the year-ago quarter’s level of 17 cents. This segment recorded total electricity sales of 8,089 GWh, down 5.3% year over year. Our model predicted the same at 8,511 GWh for the second quarter.
Rhode Island Regulated: Adjusted earnings for the quarter were 3 cents per share, up 2% year over year.
Corporate and Other: The segment incurred a loss of 3 cents per share, narrower than the year-ago quarter’s recorded loss of 4 cents.
Financial Position
As of Jun 30, 2023, PPL had cash and cash equivalents of $326 million compared with $356 million as of Dec 31, 2022.
The long-term debt was $14,481 million as of Jun 30, 2023, compared with $12,889 million as of Dec 31, 2022.
Net cash provided by operating activities in the first six months of 2023 was $842 million compared with $979 million in the year-ago period.
Guidance
PPL reaffirmed its 2023 earnings guidance in the range of $1.50-$1.65 per share. The Zacks Consensus Estimate for 2023 earnings is pegged at $1.59 per share, a tad higher than the midpoint of the company’s guided range, $1.58.
The company expects O&M savings of at least $175 million by 2026.
Zacks Rank
PPL currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Another Recent Release
WEC Energy Group WEC reported second-quarter 2023 earnings of 92 cents per share, which beat the Zacks Consensus Estimate of 85 cents by 8.24%.
WEC’s long-term (three to five years) earnings growth rate is 5.76%. It delivered an average earnings surprise of 6.6% in the last four quarters.
Upcoming Releases
Duke Energy DUK is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 EPS is pinned at $5.61, implying a year-over-year improvement of 6.5%.
NRG Energy, Inc. NRG is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.07 per share.
NRG’s long-term earnings growth rate is 4.03%. The consensus mark for 2023 EPS is pegged at $4.66, implying year-over-year growth of 77.9%.
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PPL Corporation (PPL) : Free Stock Analysis Report
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