) reported third-quarter 2013 pro forma earnings per share of 66
cents, missing the Zacks Consensus Estimate by 3 cents. Quarterly
earnings decreased by 8% year over year due to weak results from
Corporate and Other
segments. However, these negatives were partially offset by
improved performance from the
AMER ELEC PWR (AEP): Free Stock Analysis
CMS ENERGY (CMS): Free Stock Analysis Report
ENTERGY CORP (ETR): Free Stock Analysis
PPL CORP (PPL): Free Stock Analysis Report
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The company's GAAP earnings were 62 cents versus 61 cents a year
ago. The difference of 4 cents between GAAP and pro forma
earnings was due to a penny charge for the adjusted
energy-related economic activity, a charge of 13 cents for the
foreign currency-related economic hedges and another 3 cents
charges related to change in WPD line loss accrual; partially
offset by a gain of 13 cents related to changes in the U.K. tax
PPL Corporation posted total operating revenues of $3.1 billion,
beating the Zacks Consensus Estimate by $0.3 billion. Revenues
surged 29.2% year over year on the back of an increase in utility
and unregulated retail electricity and gas sales.
In the quarter under review, total operating expenses were $2.2
billion, up 29.3% year over year mainly due to a rise in
depreciation expenses and higher costs on energy-related
Increase in operating revenues more than offset rise in total
operating expenses, thereby resulting in an operating income of
$0.9 billion, up 29.1% year over year.
PPL Corporation delivered 17,436 Gigawatt hours (GWh) domestic
retail electricity, down 3.2% year over year.
The company supplied 11,762 GWh domestic retail electricity, up
0.1% year over year due to a rise in sales at PPL EnergyPlus.
Internationally, the company's volume of electricity delivery
decreased 0.3% year over year to 17,494 GWh.
In the domestic wholesale business, the company's sales dropped
10.7% year over year to 15,398 GWh.
As of Sep 30, 2013, PPL Corporation had cash and cash equivalents
of $1.3 billion versus $0.9 billion as of Dec 31, 2012.
Long-term debt (noncurrent) as of Sep 30, 2013 was $19.1 billion
compared with $18.7 billion at the end of 2012.
Net cash provided by operating activities during the first nine
months of 2013 was $2.2 billion compared with $2.1 billion in the
prior-year comparable period.
During the first nine months of 2013, the company's capital
expenditure increased 33.2% year over year to $2.8 billion.
PPL Corporation increased its full-year 2013 pro forma earnings
guidance in the range of $2.30 to $2.40 per share from the prior
projection of $2.25 to 2.40 per share. The company increased its
guidance primarily due to strong performance from its regulated
Other Company Releases
American Electric Power Company Inc.
) reported third-quarter operating earnings of $1.10 per share,
beating the Zacks Consensus Estimate of $1.08 by 1.9%.
CMS Energy Corp.
) announced third-quarter 2013 adjusted earnings per share of 46
cents, missing the Zacks Consensus Estimate by a penny.
) posted operational earnings of $2.41 per share, surpassing the
Zacks Consensus Estimate of $2.29 by 5.2%.
Though PPL Corporation reported positive earnings surprises in 4
out of last 6 quarters, the company failed to beat the estimate
mainly due to an increase in shares outstanding.
We appreciate PPL Corporation's steady effort towards upgrading
its renewable as well as traditional electricity transmission and
distribution infrastructure, on the back of stable financial
position. These initiatives will provide uninterrupted service to
its customers, thereby subsequently improving its performance
However, stringent regulations and risks associated with delay
and cancellation of projects, may to some extent, limit the
company's future results. The company currently has a Zacks Rank