PPL Corporation (PPL) Earnings: An Early Look

Earnings season is in full swing, with huge numbers of companies having already given their latest numbers to investors, and PPL Corporation (NYSE:PPL) is about to release its quarterly earnings report. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

PPL Corporation (NYSE:PPL)PPL suffered from the same trend that held back returns on utilities generally during 2012, but with its feet in some promising projects, PPL may well be able to buck that trend in 2013. Let’s take an early look at what’s been happening with PPL over the past quarter and what we’re likely to see in its quarterly report on Thursday.

Stats on PPL

Analyst EPS Estimate $0.47
Change From Year-Ago EPS (33%)
Revenue Estimate $2.47 billion
Change From Year-Ago Revenue (41%)
Earnings Beats in Past 4 Quarters 4

Source: Yahoo! Finance.

Will PPL generate some excitement this quarter?
Analysts have been reasonably confident about their projections for PPL’s fourth quarter, although the consensus earnings-per-share figure has dropped by $0.02. The stock’s performance shows few signs of any anxiety, though, with shares up 7% since early November.

Like many utilities, PPL took a big hit from Hurricane Sandy during the quarter. With roughly half a million customers losing power, the storm ranked as the worst outage in PPL’s history. In its previous quarterly report, PPL said it expected costs in excess of $60 million, but that it had insurance coverage that would pay for some of those costs and could apply for cost deferral for the remainder.

One area where PPL hopes to build more revenue is in electricity infrastructure. Since mid-2012, PPL has been working alongside General Electric Company (NYSE:GE) to run a pilot project funded by a $40 million federal stimulus grant to bring cheaper and more environmentally friendly power to 60,000 Pennsylvania customers. Yet while PPL expects to spend $3.5 billion on similar initiatives to improve infrastructure, rival Exelon (NYSE:EXC) has already committed far more resources toward smart-grid projects and plans to keep spending.

But another thing to remember about PPL is that it also has operations in the U.K. through its ownership interest in subsidiary WPD. Although peer National Grid plc (ADR) (NYSE:NGG) has a much more substantial presence in the U.K. and gets almost half its sales there, PPL gets about 12% of its revenue from WPD, providing some geographical diversification for the company.

In PPL’s coming report, look for signs that exposure to Hurricane Sandy didn’t bring any unexpected surprises. With the episode behind it, PPL’s latest rate increases could put it in better position to boost profits in the future.

The article PPL Earnings: An Early Look originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Exelon and National Grid. The Motley Fool owns shares of General Electric.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

 

 

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!