PPL Earnings: Beats Forecasts

S&P 500 (NYSE:SPY) component PPL Corporation (NYSE:PPL) reported net income above Wall Street’s expectations for the first quarter. 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 First Quarter

Results: Net income for PPL Corporation rose to $541 million (93 cents per share) vs. $401 million (82 cents per share) in the same quarter a year earlier. This marks a rise of 34.9% from the year-earlier quarter.

Revenue: Rose 41.3% to $4.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: PPL Corporation beat the mean analyst estimate of 68 cents per share. It beat the average revenue estimate of $3.14 billion.

Quoting Management: “Our first-quarter results keep us solidly on track to achieve our earnings forecast for 2012,” said William H. Spence, PPL’s chairman, president and chief executive officer. “They were in line with our expectations, despite lower electricity sales due to extraordinarily mild winter weather in the eastern U.S.”

Key Stats:

The company has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 27.9% and in the third quarter of the last fiscal year, the figure rose 79%.

Revenue has increased for four quarters in a row. Revenue increased more than twofold to $4.22 billion in the fourth quarter of the last fiscal year. The figure rose 43.2% in the third quarter of the last fiscal year from the year earlier and climbed 65.6% in the second quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past month, the average estimate for the second quarter has gone up from 38 cents per share to 42 cents. The average estimate for the fiscal year is $2.33 per share, down from $2.42 ninety days ago.

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

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