) reported second-quarter 2013 pro forma earnings of 49 cents per
share, a penny ahead of the Zacks Consensus Estimate. However,
quarterly earnings were 2 cents lower than the year-ago figure
due to weak performance from the company's
Corporate and Other
segments; partially offset by an increase in earnings at the
The company's GAAP earnings were 63 cents versus 46 cents a
year-ago. The difference of 14 cents between GAAP and pro forma
earnings was due to a gain of 11 cents related to the adjusted
energy-related economic activity, a penny gain for the LKE
discontinued operations and windfall tax litigation gain of 7
cents; partially offset by 5 cents charge from changes in WPD
line loss accrual, foreign currency-related economic hedges and
changes in tax accounting method related to repairs.
PPL Corporation reported total operating revenues of $3.5
billion, beating the Zacks Consensus Estimate by $0.8 billion and
the year-ago level by 35.3%. Improvement in revenues was
primarily driven by an increase in utility and unregulated retail
electricity and gas sales.
Total operating expenses were $2.7 billion, up 36.2% year over
year mainly due to a rise in fuel and depreciation expenses.
PPL Corporation's operating income was $758 million, up 32.5%
year over year.
Interest expenses increased 9.3% year over year to $258 million
due to a rise in debt level.
As of Jun 30, 2013, PPL Corporation had cash and cash equivalents
of $711 million versus $901 million as of Dec 31, 2012.
Long-term debt as of Jun 30, 2013 was $18.9 billion compared with
$18.7 billion as of Dec 31, 2012.
Net cash provided by operating activities during the first six
months of 2013 was $947 million, flat with the year-ago
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PPL Corporation increased its full-year 2013 pro forma earnings
guidance in the range of $2.25 to 2.40 per share from the earlier
projection of $2.15 to $2.40 per share.
Other Company Releases
American Electric Power Co. Inc.
) posted second-quarter pro forma earnings per share of 73 cents,
missing the Zacks Consensus Estimate by 4 cents.
) announced second-quarter operating earnings of 53 cents per
share, missing the Zacks Consensus Estimate by a penny.
) reported second quarter operational earnings of $1.01 per
share, beating the Zacks Consensus Estimate by 3 cents.
PPL Corporation reported positive earnings surprises in 4 out of
last 5 quarters primarily backed by stable performance from its
The company's strong financial profile allows it to upgrade
electricity transmission and distribution infrastructure to
provide uninterrupted service to its customers, which will
subsequently improve its future performance.
However, stringent regulations and risks related to delay and
cancellation of projects, may to some extent restrict the
company's future performance.
Allentown, Pa.-based PPL Corporation generates and delivers
electricity and natural gas to more than 10 million customers in
the U.S. and UK. The company currently has a Zacks Rank #3