PPL Earnings: Here’s Why Investors are Not Excited Now

PPL Corporation (NYSE:PPL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.09%.

PPL Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 31.94% to $0.49 in the quarter versus EPS of $0.70 in the year-earlier quarter.

Revenue: Decreased 23.61% to $3.22 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: PPL Corporation reported adjusted EPS income of $0.49 per share. By that measure, the company beat the mean analyst estimate of $0.47. It beat the average revenue estimate of $2.47 billion.

Quoting Management: “Given the significant challenges of 2012, we are very pleased with the earnings we are announcing today, which exceed our forecast ranges,” said William H. Spence, PPL’s chairman, president and chief executive officer. “Our strong earnings — and steadily increasing dividends — deliver significant value to shareowners. Our 2012 performance also demonstrates our ability to meet the commitments we made regarding the major acquisitions in Kentucky and the United Kingdom, and reflects the persistent efforts of PPL people to manage through the challenges of the competitive wholesale power market,” Spence said.

Key Stats (on next page)…

Revenue increased 34.08% from $2.4 billion in the previous quarter. EPS decreased 31.94% from $0.72 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.69 and has not changed. For the current year, the average estimate has moved up from a profit of $2.35 to a profit of $2.37 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)