and UK. The company currently has a Zacks Rank #3 (Hold).
) announced first-quarter 2013 pro forma earnings of 71 cents per
share, in line with the Zacks Consensus Estimate. However,
quarterly earnings were a penny higher than the year-ago figure.
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Improvement in earnings was driven by 133.3%, 19.4% and 66.7%
year-over-year rises in the Kentucky Regulated, U.K. Regulated
and Pennsylvania Regulated segments' earnings, respectively. The
growth was partially offset by a 59.2% year-over-year decline in
Supply segment's earnings.
GAAP earnings were 65 cents versus 93 cents a year-ago. The
difference of 6 cents between GAAP and pro forma earnings were
due to a charge of 18 cents associated with adjusted
energy-related economic activity in the Supply segment; partially
offset by a 12 cents gain from foreign currency-related economic
hedges in the U.K. Regulated segment.
PPL Corporation reported total operating revenues of $2.5
billion, missing the Zacks Consensus Estimate by $0.8 billion.
Quarterly revenues decreased 40.2% year over year primarily due
to lower contribution from wholesale energy marketing segment.
First-Quarter Operational Update
Total operating expenses were $1.8 billion, down 42.4% year over
year mainly owing to a decline in energy purchase expenses.
The decrease in revenues was less than offset by lower total
operating expenses, which has affected operating income. The
company's operating income decreased 34.1% year over year to $0.7
As of Mar 31, 2013, the company had cash and cash equivalents of
$853 million versus $901 million as of Dec 31, 2012.
Long-term debt as of Mar 31, 2013 was $18.9 billion compared with
$18.7 billion as of Dec 31, 2012.
Net cash provided by operating activities during the first three
months of 2013 was $0.2 billion, lower than $0.7 billion in the
year-ago comparable period.
PPL Corporation projected full-year 2013 earnings in the range of
$2.15-$2.40 per share, with a midpoint of $2.27.
Earnings in 2013 are expected to decline from the 2012 level
primarily due to lower Supply segment earnings; partially offset
by higher earnings from all three regulated segments, dilution of
21 cents per share related to shares for the 2010 and 2011 equity
units and the impact of the Apr 2012 forward stock sale.
Other Utility Company Releases
) announced first quarter operating earnings of 70 cents per
share, beating the Zacks Consensus Estimate by 2 cents.
) reported first quarter operational earnings of 94 cents per
share that came at par with the Zacks Consensus Estimate.
American Electric Power Co. Inc.
) reported first quarter earnings of 80 cents per share that were
in line with the Zacks Consensus Estimate.
We view PPL Corporation as an organization with a well
diversified asset portfolio and strong business models, which are
adaptable to a wide range of market coverage. In addition, the
company's strong financial position enables it to acquire AES
Ironwood, L.L.C and AES Prescott, L.L.C to strengthen its natural
We also appreciate the company's effort toward upgrading its
midstream infrastructure to provide uninterrupted electric supply
to its customers.
However, stringent regulations and risks associated with delay
and cancellation of several important 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