PPL's Q3 Earnings Miss Estimates, Revenues Decrease Y/Y
PPL Corporation PPL reported third-quarter 2023 operating earnings per share (EPS) of 43 cents, which missed the Zacks Consensus Estimate of 45 cents by 4.4%. The bottom line increased 4.9% from the year-ago quarter’s figure of 41 cents.
On a GAAP basis, PPL recorded EPS of 31 cents compared with 24 cents in the year-ago quarter.
Revenues
Total revenues of $2,043 million missed the Zacks Consensus Estimate of $2,196 million by 7%. The top line also declined 4.2% from the year-ago quarter’s recorded figure of $2,134 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 were $1,606 million, down 10.4% from the year-ago quarter’s $1,793 million. This decrease was due to a fall in energy purchases and lower other operation and maintenance (O&M) expenses.
The operating income totaled $437 million, up 28.2% from the year-ago quarter’s figure of $341 million.
Interest expense was $165 million, up 21.3% from $136 million.
Segmental Updates
Kentucky Regulated: Adjusted EPS was 24 cents in this segment, up 9.1% from the year-ago quarter’s figure of 22 cents. This unit recorded total electricity sales of 8,121 gigawatt-hour (GWh), down 2% year over year.
Pennsylvania Regulated: Adjusted earnings were 20 cents per share, up 11.1% from the year-ago quarter’s level of 18 cents. This segment recorded total electricity sales of 9,363 GWh, down 3.5% year over year. Our model predicted the same at 9,452 GWh for the third quarter.
Rhode Island Regulated: Adjusted earnings for the quarter were 3 cents per share, down 25% year over year.
Corporate and Other: The segment incurred a loss of 4 cents per share, wider than the year-ago quarter’s loss of 3 cents.
Financial Position
As of Sep 30, 2023, PPL had cash and cash equivalents of $353 million compared with $356 million as of Dec 31, 2022.
The long-term debt was $14,484 million as of Sep 30, 2023, compared with $12,889 million as of Dec 31, 2022.
Net cash provided by operating activities in the first nine months of 2023 was $1,648 million compared with $1,511 million in the year-ago period.
Guidance
PPL narrowed its 2023 earnings guidance to $1.55-$1.60 per share from $1.50-$1.65. The Zacks Consensus Estimate for 2023 earnings is pegged at $1.58 per share, which is at the midpoint of the company’s guided range.
The company expects O&M savings of at least $175 million by 2026.
Zacks Rank
PPL currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
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NI’s long-term (three-to-five years) earnings growth expectation is pegged at 7%. The Zacks Consensus Estimate for NI’s 2023 earnings stands at $1.58 per share, implying a year-over-year improvement of 7.5%.
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