Preview: PPL's Earnings
PPL (NYSE:PPL) is gearing up to announce its quarterly earnings on Wednesday, 2025-04-30. Here's a quick overview of what investors should know before the release.
Analysts are estimating that PPL will report an earnings per share (EPS) of $0.52.
The announcement from PPL is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
Historical Earnings Performance
Last quarter the company missed EPS by $0.03, which was followed by a 1.98% drop in the share price the next day.
Here's a look at PPL's past performance and the resulting price change:
| Quarter | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.37 | 0.42 | 0.33 | 0.50 |
| EPS Actual | 0.34 | 0.42 | 0.38 | 0.54 |
| Price Change % | -2.0% | -3.0% | 1.0% | -0.0% |
PPL Share Price Analysis
Shares of PPL were trading at $36.46 as of April 28. Over the last 52-week period, shares are up 30.13%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analyst Views on PPL
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on PPL.
A total of 3 analyst ratings have been received for PPL, with the consensus rating being Neutral. The average one-year price target stands at $36.67, suggesting a potential 0.58% upside.
Analyzing Ratings Among Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of FirstEnergy, Edison Intl and NRG Energy, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for FirstEnergy, with an average 1-year price target of $45.0, suggesting a potential 23.42% upside.
- Analysts currently favor an Outperform trajectory for Edison Intl, with an average 1-year price target of $63.89, suggesting a potential 75.23% upside.
- Analysts currently favor an Buy trajectory for NRG Energy, with an average 1-year price target of $130.6, suggesting a potential 258.2% upside.
Analysis Summary for Peers
In the peer analysis summary, key metrics for FirstEnergy, Edison Intl and NRG Energy are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| PPL | Neutral | 8.86% | $802M | 1.26% |
| FirstEnergy | Neutral | 0.95% | $2.17B | 2.10% |
| Edison Intl | Outperform | 7.50% | $1.74B | 2.43% |
| NRG Energy | Buy | 0.18% | $1.95B | 33.91% |
Key Takeaway:
PPL ranks in the middle for consensus rating among its peers. It is at the bottom for revenue growth and gross profit, but at the top for return on equity.
Get to Know PPL Better
PPL is a holding company of regulated utilities in Pennsylvania, Kentucky, and Rhode Island. The Pennsylvania regulated delivery and transmission segment distributes electricity to customers in central and eastern Pennsylvania. LG&E and KU are involved in regulated electricity generation, transmission, and distribution in Kentucky. The Kentucky utilities also serve gas customers. Rhode Island Energy operates electric and gas utilities in Rhode Island.
Unraveling the Financial Story of PPL
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: PPL's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 8.86%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Utilities sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: PPL's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 8.01%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): PPL's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.26%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): PPL's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.43%, the company may face hurdles in achieving optimal financial performance.
Debt Management: With a below-average debt-to-equity ratio of 1.19, PPL adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for PPL visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.