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Can PPL Corp (PPL) Pull a Surprise This Earnings Season?

PPL Corporation PPL will release second-quarter 2017 financial results on Aug 3, before market opens. Last quarter, the company’s earnings were in line with the estimates.

Let’s see how things are shaping up prior to this announcement.

Factors to Consider

To protect its U.K. Regulated Segment from the foreign exchange fluctuations, the company reestablished its hedge levels. PPL Corp. has hedged 100% of the pound at an average rate of $1.21 per pound in 2017. This initiative will help the company to achieve its 5% to 6% compound annual EPS growth range even if the pound falls to $1.05.

PPL Corp.’s Kentucky Regulated segment will continue to benefit from the electricity and gas base rate increases, but higher operating expenses are concerns.

PPL Corporation Price and EPS Surprise

PPL Corporation Price and EPS Surprise | PPL Corporation Quote

 

Earnings Whispers

Our proven model does not conclusively show that PPL Corp is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.

Zacks ESP: The Company’s Earnings ESP is 0.00% because the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 50 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Though PPL Corp’s Zacks Rank #3 increases the predictive power of ESP, the 0.00% ESP makes surprise prediction difficult.

We caution against stocks with a Zacks Rank #4 (Sell) or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Here are some companies you may want to consider from the Zacks categorized Utility sector as our proven model shows that they have the right combination of elements to post an earnings beat this quarter.

Pattern Energy Group Inc. PEGI has an Earnings ESP of +23.08% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 8. You can see the complete list of today’s Zacks #1 Rank stocks here.

The AES Corporation AES has an Earnings ESP of +20.00% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 8.

ALLETE, Inc. ALE has an Earnings ESP of +5.36% and a Zacks Rank #2. It is slated to report second-quarter 2017 earnings on Aug 8.

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The AES Corporation (AES): Free Stock Analysis Report
 
PPL Corporation (PPL): Free Stock Analysis Report
 
Allete, Inc. (ALE): Free Stock Analysis Report
 
Pattern Energy Group Inc. (PEGI): Free Stock Analysis Report
 
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