We expect electricity and natural gas supplier
) to beat expectations when it reports fourth-quarter 2012
results on Feb 14, 2013.
NV ENERGY INC (NVE): Free Stock Analysis
ORMAT TECH INC (ORA): Free Stock Analysis
PG&E CORP (PCG): Free Stock Analysis
PPL CORP (PPL): Free Stock Analysis Report
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Why a Likely Positive Surprise?
Our proven model shows that PPL Corporation is likely to beat
earnings because it has the right combination of key factors.
Positive Zacks ESP:
Expected Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is at +2.17%. This is
meaningful and a leading indicator of a likely positive earnings
surprise for this company.
Zacks #3 Rank (Hold):
We note that stocks with Zacks Ranks of #1, 2 and 3 have a
significantly higher chance of beating earnings. The Sell rated
stocks (#4 and 5) should never be considered going into an
The combination of PPL Corporation's Zacks Rank #3 (Hold) and
+2.17% ESP makes us confident of a positive earnings beat this
PPL Corporation's diversified asset portfolio and business model
is adaptable to a wide range of market situations. We expect this
diversified generation mix positions the company to benefit from
proposed Environmental Protection Agency regulations.
PPL Corporation continues to focus on retaining a strong credit
profile and liquidity position. As of Sep 30, 2012, the cash
position was $946 million and available domestic credit
facilities were $4.6 billion. This financial comfort enables it
to deal with the after-effects of the Hurricane Sandy and follow
inorganic as well as organic growth strategies.
The positive trend is seen in the trailing four quarter average
surprise of 12.31%. PPL Corporation's third-quarter surprise was
5.88% aided by benefits from acquisition along with solid
liquidity and credit positions.
Other Stocks to Consider
PPL Corporation is not the only organization looking up this
earnings season. We also expect other utility providers to beat
Ormat Technologies Inc.
), earnings ESP of +50.00% and Zacks Rank #2 (Buy).
NV Energy, Inc.
), earnings ESP of +14.29% and Zacks Rank #3 (Hold).
), earnings ESP of +1.75% and Zacks Rank #3 (Hold).