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What to Expect From PPL Corporation (PPL) in Q3 Earnings?

PPL CorporationPPL is slated to report third-quarter 2017 results before the market opens on Nov 1. In the second quarter, the utility company reported a positive earnings surprise of 1.52%. Let's see how things are shaping up for this earnings season.

Factors to Consider

Unfavorable weather in PPL Corporation's service territories has already resulted in 3 cents drop in earnings in the first half of 2017 compared with the last-year period. Taking into consideration the weather condition, the company has lowered its full-year earnings expectations from Kentucky Regulated segment by 2 cents for the year.

However, the company is expected to benefit from the rates which became effective Jul 1, 2017. The new rates will result in an annual revenue increase of $116 million for PPL Corporation.

The contribution from U.K. Regulated segment earnings in expected to be lower than the period last year due to lower foreign currency exchange rates in 2017.

PPL Corporation Price and EPS Surprise

PPL Corporation Price and EPS Surprise | PPL Corporation Quote

Earnings Whispers

Our proven model does not conclusively show that PPL Corporation is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below.

Zacks ESP : The company's Earnings ESP is +0.94%.This is because Most Accurate estimate is pegged at 54 cents, higher than the Zacks Consensus Estimate of 53 cents.

You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank : PPL Corporation has a Zacks Rank #4 (Sell).

Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Here are some companies from the industry that you may want to consider instead, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

ALLETE Inc. ALE is expected to release third-quarter 2017 results on Nov 1. The company has an Earnings ESP of +1.89% and a Zacks Rank #1. You can see the complete list of today's Zacks #1 Rank stocks here.

NiSource Inc. NI has an Earnings ESP of +7.84% and a Zacks Rank #2. The company is expected to release third-quarter 2017 results on Nov 1.

Exelon Corporation EXC has an Earnings ESP of +0.48% and a Zacks Rank #3. The company is expected to release third-quarter 2017 results on Nov 2.

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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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