Utility PPL misses quarterly profit estimate as mild weather softens demand
Aug 4 (Reuters) - Electricity and natural gas utility PPL Corp missed second-quarter profit estimates on Friday, as mild weather and increased storm activity in some areas hurt power demand.
PPL's Kentucky and Pennsylvania regulated units were also hurt by a higher interest expense, which rose 40% during the April-June quarter from a year earlier.
Borrowing has become more expensive for businesses due to U.S. Federal Reserve's rapid interest rate hikes to curb runaway inflation.
Allentown, Pennsylvania-based PPL said adjusting for special items, earnings from ongoing operations stood at 29 cents per share for the three months ended June 30, missing the average analyst estimate of 32 cents, according to Refinitiv data.
Several utility companies have faced pressure from mild weather and higher interest expenses in their latest reported quarter.
Still, PPL reaffirmed its 2023 ongoing earnings of $1.50 to $1.65 per share, compared with the average analyst estimate of $1.58.
(Reporting by Arunima Kumar in Bengaluru; Editing by Shinjini Ganguli)
