Market Overview

PPL Earnings Preview: Analysts Expect Rising Revenue, Falling EPS

PPL (NYSE: PPL) announces its next round of earnings this Thursday, November 3, 2011. Here's Benzinga's essential guide to PPL's third quarter earnings report.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of 69 cents/share and revenues of $2.96 billion. PPL's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of 74 cents/share on revenues of $2.18 billion. We'll have to wait for Thursday to see if the company reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 Q1 Q4 Q3
EPS Estimate $0.44 $0.73 $0.58 $0.69
EPS Actual $0.45 $0.84 $0.84 $0.74

Stock Performance:

At last check, shares of PPL were trading at $29.70. Since January 1st, shares have given investors a return of 17.3%. For a full 12 months, the return has risen by 17.4%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

  • Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts is a Hold. Over the past three months this rating's strength has declined slightly.

Competitors:

Wondering how PPL compares to rivals in the same sector? Here are a few of the company's peers.

  • American Electric Power Company (NYSE: AEP): Hold with a $1.17 recent quarter EPS
  • AES (NYSE: AES): Strong Buy with a $0.28 recent quarter EPS
  • Constellation Energy Group (NYSE: CEG): Hold with a $0.68 recent quarter EPS
  • Duke Energy (NYSE: DUK): Moderate Sell with a $0.33 recent quarter EPS

PPL is in the utility-electric power industry, which has experienced price/earnings growth of 26.8%.

Finally, a description of the company's main areas of operation: PPL Corporation is an energy and utility holding company that generates and markets electricity in the northeastern and western U.S.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

  • To see up-to-date news on PPL, click here
  • To see other trading ideas, click here
  • To see other company earnings recaps, click here

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