PPL Corporation PPL is scheduled to release second-quarter 2024 results on Aug 2, before market open. The company delivered an earnings surprise of 3.9% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
PPL’s quarterly earnings are likely to have gained from increased transmission investment and ongoing savings of operation and maintenance through its centralization efforts and asset optimization.
The company’s service territories experienced warmer-than-normal temperature patterns during the quarter. This is expected to have boosted electricity demand among its customers for cooling purposes, thereby positively contributing to its top-line performance.
However, increased depreciation and higher interest expenses are expected to have offset some positives in the to-be-reported quarter.
Q2 Expectations
The Zacks Consensus Estimate for earnings is pegged at 31 cents per share, indicating a year-over-year increase of 6.9%.
The Zacks Consensus Estimate for revenues is pinned at $1.91 billion, implying a year-over-year improvement of 5%.
The Zacks Consensus Estimate for total electricity delivered in Pennsylvania is pegged at 8,249 gigawatt-hour (GWh), up 2% year over year. The consensus estimate for total electricity delivered in Kentucky is pinned at 6,619 GWh, which is nearly flat year over year.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for PPL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
PPL Corporation Price and EPS Surprise
PPL Corporation price-eps-surprise | PPL Corporation Quote
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, PPL carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks to Consider
Investors may consider the following players from the same industry as these have the right combination of elements to post an earnings beat this reporting cycle.
Entergy Corporation ETR is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +2.42% and a Zacks Rank #3 at present.
ETR’s long-term (three to five years) earnings growth rate is 7.33%. The Zacks Consensus Estimate for second-quarter sales is pegged at $2.94 billion, which implies a year-over-year increase of 3.2%.
Xcel Energy XEL is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +3.48% and a Zacks Rank #2 at present.
XEL’s long-term earnings growth rate is 6.39%. The Zacks Consensus Estimate for sales is pegged at $3.23 billion, which implies a year-over-year increase of 6.8%.
TransAlta TAC is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +20.00% and a Zacks Rank #1 at present.
The Zacks Consensus Estimate for second-quarter earnings has moved up 20% in the past seven days. It delivered an average earnings surprise of 174.7% in the past four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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.
