PPL Corporation (NYSE:PPL) reported first-quarter 2018 adjusted earnings of 74 cents per share, beating the Zacks Consensus Estimate of 66 cents by 12.1%. Earnings also improved 19.4% year over year.
The year-over-year improvement in earnings is primarily due to strong performance from its domestic segments.
On a GAAP basis, the company reported earnings per share of 65 cents in the quarter compared with 59 cents a year ago. The difference between GAAP and operating earnings in the reported quarter was due to one-time impact of 9 cents from foreign currency hedges.
Total Revenues
PPL Corp. posted revenues of $2,126 million in the first quarter, beating the Zacks Consensus Estimate of $1,983 million by 7.2%. Revenues also improved 8.9% year over year.
Segment Results
U.K. Regulated: Adjusted earnings decreased 17.8% from the prior-year quarter to 37 cents per share. The decline was primarily due to lower volumes and impact from share dilution.
Kentucky Regulated: Adjusted earnings were 19 cents, up 35.7% from the year-ago quarter, primarily driven by higher base electricity and gas rates effective Jul 1, 2017 and rise in sales volumes due to favorable weather.
Pennsylvania Regulated: Adjusted earnings in the quarter were 21 cents, up 75.0% from the year-ago quarter. The year-over-year improvement was due to higher transmission earnings due to additional capital investments.
Corporate and Other: It includes unallocated corporate-level financing and other costs. The segment reported a loss of 3 cents in the quarter compared with a loss of 9 cents in the prior-year quarter.
Operational Highlights
PPL Corp.’s total operating expenses increased 6.9% year over year to $ 1,275 million in the reported quarter.
The company reported operating income of $851 million, up 12.3% from the prior-year quarter.
Interest expenses increased 10.1% to $239 million compared with the year-ago quarter’s figure of $217 million.
Financial Position
As of Mar 31, 2018, PPL Corp. had cash and cash equivalents of $629 million compared with $485 million as of Dec 31, 2017.
Long-term debt (excluding debts due within one year) was $20,214 million as of Mar 31, 2018, compared with $19,847 million at the end of 2017.
In the first quarter of 2018, net cash flow from operating activities was $566 million compared with $135 million in the first quarter of 2017.
Guidance
PPL Corp. reaffirmed its 2018 adjusted earnings to be in the range of $2.20-$2.40 per share. The company also provided compound earnings growth guidance of 5-6% from 2018 through 2020, with 2018 midpoint as the base.
Zacks Rank
Currently, PPL Corp. carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Releases
WEC Energy Group (NYSE:WEC) reported first-quarter 2018 operating earnings of $1.23 per share, beating the Zacks Consensus Estimate of $1.16 by 6.03%.
NextEra Energy, Inc. (NYSE:NEE) posted first-quarter 2018 adjusted earnings of $1.94 per share, beating the Zacks Consensus Estimate of $1.78 by 8.9%.
FirstEnergy Corporation (NYSE:FE) reported first-quarter 2018 operating earnings of 67 cents per share, lagging the Zacks Consensus Estimate of 68 cents by 1.5%.
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PPL Corporation (PPL): Free Stock Analysis Report
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