PPL Corporation PPL reported third-quarter 2024 operating earnings per share (EPS) of 42 cents, which surpassed the Zacks Consensus Estimate of 39 cents by 7.7%. In the year-ago quarter, earnings were 43 cents per share.

On a GAAP basis, PPL recorded EPS of 29 cents compared with 31 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to a one-time item like 13 cents expenses related to acquisition integration.

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Revenues

Total revenues of $2.07 billion missed the Zacks Consensus Estimate of $2.11 billion by 2.1%. The top line increased 1.1% from the year-ago figure of $2.04 billion.

Highlights of the Release

In the third quarter, the company sold 17,738 gigawatt hours of electricity to its customers in Pennsylvania and Kentucky, which reflects 1.5% year-over-year growth.

Total operating expenses were $1.64 billion, up 1.8% from the year-ago quarter’s $1.61 billion. This was due to an increase in fuel and other operation and maintenance expenses.

Operating income totaled $428 million, down 2.1% from the year-ago figure of $437 million.

Interest expenses were $188 million, up 13.9% from $165 million in the corresponding period of 2023.

Segmental Updates

Pennsylvania Regulated: Adjusted EPS was 19 cents, down 5% from the year-ago figure of 20 cents. The year-over-year decrease was due to higher operating costs.

Kentucky Regulated: Adjusted EPS was 24 cents, flat year over year.

Rhode Island Regulated: Adjusted EPS was 4 cents, up 33.3% from the year-ago figure of 3 cents. Factors driving earnings results primarily included lower property taxes.

Corporate and Other: The segment incurred a loss of 5 cents per share compared with a loss of 4 cents in the year-ago quarter.

Financial Position

As of Sept. 30, 2024, PPL had cash and cash equivalents of $542 million compared with $331 million as of Dec. 31, 2023.

The long-term debt was $16.5 billion as of Sept. 30, 2024, compared with $14.6 billion as of Dec. 31, 2023.

Net cash provided by operating activities in the first nine months of 2024 was $1.83 billion compared with $1.65 billion in the year-ago period.

Guidance

PPL narrowed its 2024 ongoing earnings forecast range to $1.67-$1.73 per share from $1.63-$1.75. The Zacks Consensus Estimate is pegged at $1.72 per share, which is a tad higher than the midpoint of the company’s guided range. It reaffirmed long-term annual earnings growth rate to the range of 6-8% through 2027.

The company reiterated its capital expenditure guidance of $14.3 billion for 2024-2027.

Management expects O&M savings to be at least $175 million by 2026. PPL is on track to deliver O&M savings in the range of $120-$130 million by the end of 2024.

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.

Upcoming Releases

Pinnacle West Capital Corporation PNW is scheduled to report third-quarter results on Nov. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.33 per share.

PNW’s long-term (three to five years) earnings growth rate is 8.22%. The Zacks Consensus Estimate for 2024 earnings is pinned at $4.88 per share, which implies a year-over-year improvement of 10.7%.

Evergy EVRG is scheduled to report third-quarter results on Nov. 7, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.95 per share, which suggests a year-over-year increase of 3.7%.

EVRG’s long-term earnings growth rate is 5.85%. The Zacks Consensus Estimate for 2024 earnings is pinned at $3.84 per share, which implies a year-over-year improvement of 8.5%.

NRG Energy NRG is scheduled to report third-quarter results on Nov. 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.71 per share, which suggests a year-over-year increase of 5.6%.

The Zacks Consensus Estimate for 2024 earnings is pinned at $6.09 per share, which implies a year-over-year improvement of 41%. It delivered an average earnings surprise of 7% in the past four quarters.

 

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