PPL Corp First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component PPL Corp (NYSE:PPL) will unveil its latest earnings on Friday, May 4, 2012. PPL Corporation is an energy and utility holding company that generates and markets electricity in the northeastern and western U.S.

PPL Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 68 cents per share, a decline of 19% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 69 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. For the year, analysts are projecting profit of $2.33 per share, a decline of 14.7% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 8 cents, reporting net income of 70 cents per share against a mean estimate of profit of 62 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $3.14 billion in revenue this quarter, a rise of 7.9% from the year-ago quarter. Analysts are forecasting total revenue of $11.53 billion for the year, a decline of 9.5% from last year’s revenue of $12.74 billion.

Analyst Ratings: Analysts seem relatively indifferent about PPL with nine of 13 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 27.9% to $454 million (79 cents a share) from $355 million (77 cents a share) the year earlier, exceeding analyst expectations. Revenue rose more than twofold to $4.22 billion from $1.86 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose more than twofold in the second quarter of the last fiscal year and 79% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 65.6% in the second quarter of the last fiscal year and 43.2% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between March 30, 2012 and April 30, 2012, the stock price dropped 91 cents (-3.2%), from $28.26 to $27.35. The stock price saw one of its best stretches over the last year between December 19, 2011 and December 27, 2011, when shares rose for six straight days, increasing 5.1% (+$1.42) over that span. It saw one of its worst periods between March 30, 2012 and April 5, 2012 when shares fell for five straight days, dropping 2.2% (-63 cents) over that span.

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

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