PPL Corp. Earnings: Weak Revenue and Net Income

S&P 500 (NYSE:SPY) component PPL Corporation (NYSE:PPL) posted a decrease in profit as revenue declined. PPL Corporation is an energy and utility holding company that generates and markets electricity in the northeastern and western U.S.

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PPL Earnings Cheat Sheet for the Third Quarter

Results: Net income for PPL Corporation fell to $355 million (61 cents per share) vs. $444 million (76 cents per share) a year earlier. This is a decline of 20% from the year-earlier quarter.

Revenue: Fell 23% to $2.4 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: PPL Corporation reported adjusted net income of 72 cents per share. By that measure, the company beat the mean estimate of 68 cents per share. It fell short of the average revenue estimate of $3.14 billion.

Quoting Management: “Our solid performance through three quarters gives us the confidence to increase the midpoint of our earnings forecast range despite the previously announced turbine inspection outages at the Susquehanna nuclear power plant,” said William H. Spence, PPL’s chairman, president and chief executive officer.

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose 38.3% from the year earlier, while the figure increased 34.9% in the first quarter, 27.9% in the fourth quarter of the last fiscal year and 79% in the third quarter of the last fiscal year.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise more than twofold.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 11 cents in the second quarter, by 2 cents in the first quarter, and by 8 cents in the fourth quarter of the last fiscal year.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 45 cents per share, down from 49 cents ninety days ago. For the fiscal year, the average estimate has moved up from $2.34 a share to $2.36 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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