PPL Corporation PPL is set to release second-quarter 2020 results on Aug 10, before market open. The company delivered an earnings surprise of 1.05% in the trailing four quarters, on average.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
Second-quarter results are likely to reflect the negative impact of soft demand from the commercial and industrial (C&I) customers group due to coronavirus-induced lockdown. However, stay-at-home directives to break the chain are expected to have perked up residential demand and marginally offset the shrinking demand from the C&I group. Also, the company provided payment flexibility and suspended disconnection to support its U.S. customers during the pandemic, which might have impacted the second-quarter earnings.
Meanwhile, amid fluctuating currency prices, PPL Corp hedged nearly 86% of its U.K. earnings for the remainder of 2020, which is expected to positively impact the June-quarter results.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 56 cents, indicating a decline of 3.45% from the year-ago reported figure.
Our proven model doesn’t conclusively predict an earnings beat for PPL Corp this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
PPL Corporation Price and EPS Surprise
PPL Corporation price-eps-surprise | PPL Corporation Quote
Earnings ESP: PPL Corp has an Earnings ESP of -1.79%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, PPL Corp carries a Zacks Rank #3.
Earnings of some electric utilities surpassed the Zacks Consensus Estimate this reporting cycle, which include FirstEnergy Corporation FE, Xcel Energy Inc. XEL and NiSource Inc NI. FirstEnergy’s earnings beat estimates by 3.64% while Xcel Energy’s results outpaced the same by 17.4%. Also, NiSource’s earnings surpassed the mark by 85.7%.
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