Valued at a market cap of $24.5 billion, PPL Corporation (PPL) is a leading energy company providing electricity and natural gas to millions of customers across the U.S. The company operates through three key segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated, delivering both electricity and natural gas services to meet the diverse needs of its customer base. The Allentown, Pennsylvania-based company is expected to unveil its fiscal Q4 earnings results on Friday, Feb. 21.
Before the event, analysts anticipate the energy and utility holding company to report a profit of $0.39 per share, down 2.5% from $0.40 per share in the year-ago quarter. However, the company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the last reported quarter, PPL exceeded the consensus EPS estimate by a margin of 7.7%.
For fiscal 2024, analysts expect PPL to report EPS of $1.72, up 7.5% from $1.60 in fiscal 2023.
PPL's shares have returned 27.8% over the past 52 weeks, slightly outperforming both the S&P 500 Index's ($SPX) 26.5% gain. However, the stock has lagged behind the Utilities Select Sector SPDR Fund's (XLU) 30.2% increase over the same period.
Despite reporting better-than-expected Q3 adjusted EPS of $0.42, shares of PPL fell 3.1% on Nov. 1 due to a miss on revenue expectations, with total revenue of $2.1 billion. Additionally, higher operating expenses and increased interest expenses weighed on the overall financial performance. Concerns regarding the rise in long-term debt to $16.5 billion, also added to investor worries. The narrowing of the 2024 earnings guidance range to $1.67 - $1.73 and subdued performance in the Pennsylvania Regulated segment contributed to the decline in stock price.
Analysts' consensus rating on PPL stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 16 analysts covering the stock, opinions include 10 "Strong Buys," two "Moderate Buys," and four "Holds." This configuration is more bullish than three months ago, with eight analysts suggesting a "Strong Buy."
As of writing, PPL is trading below the average analyst price target of $35.62.
