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Is a Beat in Store for PPL Corp (PPL) This Earnings Season?


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We expect PPL Corporation PPL to beat earnings in second-quarter 2018, before the market opens on Aug 7. The utility delivered positive earnings surprises in all of the last four quarters, the positive average surprise being 9.09%

What Does the Quantitative Model Predict?

Our proven model shows that PPL Corp is likely to beat estimates this quarter as it possesses the key components. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.

Earnings ESP : PPL Corp has an Earnings ESP of +1.43%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank : PPL Corp has a Zacks Rank #3. The combination of a favorable Zacks Rank and positive ESP makes us reasonably confident of earnings beat this season.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing a negative estimate revision momentum.

PPL Corporation Price and EPS Surprise

PPL Corporation Price and EPS Surprise | PPL Corporation Quote

Factors to Consider

PPL Corp continues to follow an organic growth strategy to expand and upgrade its utility systems. Moreover, the acquisition of solar energy solution provider, Safari Energy is expected to have diversified its revenue components and the customer base, which should duly get reflected in the upcoming quarterly results.

We expect the second-quarter results to reflect strong demand at its domestic and U.K. regulated segments. The company is also expected to have benefited from higher transmission and distribution margins, new rates as well as favorable weather, which have possibly driven second-quarter sales volume.

The Zacks Consensus Estimate for second-quarter revenues has risen 1.4% to $1,749 million from same period last year. Also, the consensus estimate calls for earnings of 54 cents compared with 52 cents in the year-ago quarter, reflecting a rise of 3.8%.

Other Stocks to Consider

In addition to PPL Corp, here are some companies from the industry that you may want to consider, as our model shows that these have the right combination of elements to beat earnings this quarter:

OGE Energy Corporation OGE is expected to release second-quarter results on Aug 9. It has an Earnings ESP of +4.39% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here .

Pattern Energy Group Inc. PEGI is anticipated to release second-quarter results on Aug 9. It has an Earnings ESP of +66.66% and carries a Zacks Rank #3.

The AES Corporation AES is expected to release second-quarter results on Aug 7. It has an Earnings ESP of +3.01% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: AES , PPL , PEGI , OGE



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