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PPL Corp. Posts In Line Q4 Earnings, Gives 2016 Guidance

PPL Corporation PPL reported fourth-quarter 2015 adjusted earnings of 43 cents per share, consistent with the Zacks Consensus Estimate.

PPL Corporation (PPL) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

On a GAAP basis, the company reported earnings per share of 59 cents in the quarter compared with $1.04 a year ago

Full-year adjusted earnings were $2.21 per share, beating the Zacks Consensus Estimate of $2.20 and increasing from the prior-year earnings of $2.03 per share.

Full-year GAAP earnings were $1.01, down 61% from the prior-year figure of $2.61.

Total Revenues

PPL Corp.'s total revenues of $1,780 million missed the Zacks Consensus Estimate of $2,929 million by 39.2%. Revenues also decreased 8.5% year over year.

Full-year revenues came in at $7,669 million, missing the Zacks Consensus Estimate by 11.3% and declining 2.3% from the prior-year figure.

Segment Results

UK Regulated: Adjusted earnings decreased by 7 cents on a year-over-year basis to 29 cents per share. The decrease was attributable to lower margins, primarily driven by an announced price decrease on Apr 1, 2015, associated with the beginning of a new eight-year price control period and higher operation and maintenance expense, partially offset by lower income taxes in the U.K. and lower depreciation expense.

Kentucky Regulated: Adjusted earnings decreased by 1 cent to 9 cents per share owing to unfavorable weather and higher financing costs, partially offset by higher base electricity rates and increasing returns on additional environmental capital investments.

Pennsylvania Regulated: Adjusted earnings fell by 1 cent to 9 cents per share on a year-over-year basis.

Corporate and Other : Adjusted loss narrowed to 4 cents per share from a loss of 7 cents in the year-ago quarter due to the benefits of corporate restructuring.

Operational Highlights

PPL Corp.'s total operating expenses decreased 6.7% year over year to $1,163 million in the reported quarter.

The company reported an operating income of $617 million, down from $700 million a year ago.

Interest expenses rose 9.7% to $226 million from $206 million a year ago.

Financial Position

As of Dec 31, 2015, PPL Corp. had cash and cash equivalents of $836 million compared with $1,399 million as of Dec 31, 2014. Long-term debt (excluding debts due within one year) was $18,563 million as of Dec 31, 2015, compared with $17,054 million at the end of 2014.

In 2015, net cash flow from operating activities (continuing operations) was $2,234 million compared with $2,941 million in the prior-year period.

Guidance

PPL Corp. provided 2016 adjusted earnings guidance in the range of $2.25 to $2.45 per share with the mid point pegged at $2.35.

The midpoint of the adjusted earnings guidance for UK Regulated, Kentucky Regulated and Pennsylvania Regulated are pegged at $1.43, 57 cents and 47 cents, respectively, for the year.

The company expects annual earnings growth of 5-6% through 2018, off a 2014 base.

Upcoming Peer Releases

Calpine Corp. CPN is slated to release fourth-quarter results on Feb 12, 2016. The Zacks Consensus Estimate is pegged at a loss 5 cents.

IdaCorp, Inc. IDA is slated to release fourth-quarter results on Feb 18, 2016. The Zacks Consensus Estimate is 66 cents.

ALLETE, Inc. ALE is slated to release fourth-quarter results on Feb 18, 2016. The Zacks Consensus Estimate is 81 cents.

Zacks Rank

PPL Corp. currently has a Zacks Rank #3 (Hold).

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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.


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

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