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.

 

 

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!