Core Viewpoint - PPL Corporation (PPL) is experiencing growth driven by increased demand from data centers, particularly in Pennsylvania and Kentucky, despite its stock underperforming compared to the broader utility industry [1][2][23]. Group 1: Performance and Demand - PPL shares have gained 4.2% year-to-date, while the Zacks Utility-Electric Power industry has rallied 8.9% [1]. - The company is benefiting from nearly 11 gigawatts (GW) of potential data center demand, with an estimated transmission capital investment of $700 million to $850 million [6]. - Active data center requests in Pennsylvania have surged to 50 GW for the 2026-2034 period, while Kentucky has announced a 400 megawatt (MW) hyperscale data center campus [6]. Group 2: Strategic Initiatives - PPL is focusing on infrastructure construction projects for generation, transmission, and distribution, resulting in fewer outages for customers [4]. - The company is implementing its "Utility of the Future" strategy, which includes an IT transformation to standardize operations and enhance grid resilience against weather risks [5]. - PPL plans to invest $20 billion from 2025 through 2028 to meet rising demand and improve service quality [7][9]. Group 3: Financial Outlook - The Zacks Consensus Estimate indicates PPL's earnings per share (EPS) will increase by 7.69% in 2025 and 7.97% in 2026 [11]. - PPL has a history of beating earnings estimates, with an average surprise of 8.84% over the last four quarters [13]. - The company aims to reduce operating and maintenance costs by at least $150 million by 2025 and $175 million by 2026 to enhance margins [10]. Group 4: Dividend and Valuation - PPL plans to increase its annual dividend by 6-8% through at least 2028, with a current quarterly dividend of 27.25 cents per share [16]. - The targeted dividend payout ratio is expected to be in the range of 60-65% [17]. - PPL's trailing 12-month return on equity (ROE) is 9.14%, lower than the industry average of 10.31% [19].

Company Performance - PPL closed at $33.54, reflecting a -1.32% change from the previous day, underperforming the S&P 500's gain of 0.48% [1] - Over the past month, PPL shares have decreased by 1.48%, while the Utilities sector gained 1.16% and the S&P 500 increased by 5.13% [1] Upcoming Financial Results - The upcoming EPS for PPL is projected at $0.39, indicating a 2.63% increase year-over-year [2] - The Zacks Consensus Estimate for revenue is $1.98 billion, representing a 5.52% increase from the previous year [2] Full Year Estimates - Analysts expect earnings of $1.82 per share and revenue of $8.91 billion for the full year, marking increases of +7.69% and +5.27% respectively from last year [3] - Recent changes in analyst estimates for PPL can indicate evolving business trends, with positive revisions seen as favorable for the business outlook [3] Valuation Metrics - PPL has a Forward P/E ratio of 18.68, which is a premium compared to the industry average Forward P/E of 18.19 [6] - The company has a PEG ratio of 2.5, while the Utility - Electric Power industry average PEG ratio is 2.57 [7] Industry Ranking - The Utility - Electric Power industry has a Zacks Industry Rank of 78, placing it in the top 32% of over 250 industries [7] - The Zacks Rank system indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - PPL Corporation is experiencing significant growth due to increased demand from data centers, particularly in Pennsylvania and Kentucky, driven by the rise in artificial intelligence workloads [1][4] - The U.S. data center market is projected to reach $308.83 billion by 2030, indicating a robust expansion opportunity for utilities like PPL [1] Group 1: Data Center Demand and Growth - PPL is witnessing load growth with nearly 11 gigawatts (GW) of potential data center demand in advanced stages, requiring a capital investment of $700-$850 million [2] - Active data center requests in Pennsylvania have surged to 50 GW for the period of 2026-2034, reflecting a strong demand trajectory [2][8] - In Kentucky, the first 400 megawatt (MW) hyperscale data center campus has been announced, with active requests nearing 6 GW for the same period [3] Group 2: Capital Investments and Infrastructure - PPL plans to invest $20 billion in capital expenditures from 2025 to 2028 to modernize its grid infrastructure and connect data centers [3][8] - The expected capital investment for 2025 and 2026 is projected to be $4.3 billion and $5.2 billion, respectively [3] Group 3: Strategic Positioning and Revenue Growth - PPL is strategically positioning itself to capitalize on the anticipated data center boom by investing in grid modernization and enhancing transmission and distribution infrastructure [4] - The company aims to secure new revenue streams and strengthen long-term growth prospects through partnerships and service agreements with data center operators [4] Group 4: Stock Performance and Earnings Estimates - PPL's stock has increased by 23.4% over the past year, outperforming the industry average growth of 18.2% [7] - The Zacks Consensus Estimate indicates an earnings per share growth of 7.69% for 2025 and 7.97% for 2026 [10]

May 2024 Investor Meetings PPL CORPORATION Cautionary Statements and Factors That May Affect Future Results Statements made in this presentation about future operating results or other future events are forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the forward-looking statements. A discussion of some of the factors that could cause actual results or events to vary is contained in the Appendix of ...

In the latest close session, PPL (PPL) was up +1.78% at $34.38. The stock's change was more than the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq gained 0.24%. Coming into today, shares of the energy and utility holding company had gained 0.78% in the past month. In that same time, the Utilities sector gained 0.15%, while the S&P 500 gained 6.6%. The investment community will be closely monitoring the performance of PPL in its forthcoming earnings report. O ...

Industry Overview - The Zacks Utility - Electric Power industry is characterized by a regulated framework that allows utilities to recover costs and generate consistent returns, minimizing earnings volatility [1] - The sector is seen as a dependable choice for income-oriented investors due to steady electricity demand and attractive dividend yields [1] Transition to Clean Energy - Electric utilities in the U.S. are evolving beyond traditional income providers, driven by investments in grid modernization, renewable energy integration, and electrification [2] - Federal incentives and climate initiatives are reshaping the utilities industry, positioning companies at the forefront of this transition for sustained growth [2] Company Profiles PPL Corporation - PPL Corporation focuses on infrastructure upgrades and clean energy, benefiting from predictable revenues due to its regulated nature [3] - The company is well-positioned for steady earnings growth and long-term value through investments in grid reliability and sustainable energy [3] Ameren Corporation - Ameren Corporation serves Missouri and Illinois, offering stable cash flows and a reliable dividend yield, supported by a constructive regulatory environment [4] - The company emphasizes grid modernization and clean energy transition, backed by strong financial management and credit ratings [4] Earnings Growth Projections - PPL's earnings per share (EPS) is projected to grow by 7.69% in 2025 and 8.24% in 2026, with a long-term growth estimate of 7.46% [6] - Ameren's EPS is expected to grow by 6.48% in 2025 and 7.61% in 2026, with a long-term growth estimate of 6.95% [9] Financial Metrics - PPL's return on equity (ROE) is 9.14%, while Ameren's ROE is 10.40%, which is above the industry's average of 10.13% [12] - PPL's debt-to-capital ratio is 52.71%, lower than Ameren's 59.78% and the industry's 54.57% [14] Dividend Yield - PPL Corporation has a dividend yield of 3.19%, higher than Ameren's 2.98% and the industry's yield of 3.17% [16] Valuation - PPL appears cheaper than Ameren on a Price/Earnings Forward 12-month basis, trading at 18.19X compared to Ameren's 18.75X [17] Capital Expenditure Plans - PPL plans to invest nearly $20 billion from 2025 to 2028 for infrastructure and clean electricity generation [19] - Ameren plans to invest $27.4 billion from 2025 to 2029 for strengthening its electric transmission, distribution, and generation infrastructure [19] Conclusion - PPL offers a balanced mix of income and long-term value appreciation potential, with a cheaper valuation and lower debt level compared to Ameren [20]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on PPL, and highlights the potential misalignment of interests between brokerage analysts and retail investors [1][10]. Group 1: Brokerage Recommendations for PPL - PPL has an average brokerage recommendation (ABR) of 1.57, indicating a consensus between Strong Buy and Buy, based on recommendations from 15 brokerage firms [2]. - Out of the 15 recommendations, 10 are classified as Strong Buy, accounting for 66.7%, while one is a Buy, making up 6.7% of the total [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [5]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, often issuing five Strong Buy recommendations for every Strong Sell [6][10]. - The ABR may not be up-to-date, as it does not reflect the latest changes in earnings estimates, which can mislead investors [12]. Group 3: Zacks Rank as an Alternative - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, providing a more effective indicator of near-term stock price performance compared to ABR [8][11]. - The Zacks Rank is timely and reflects changes in earnings estimates quickly, unlike the ABR [12]. - For PPL, the Zacks Consensus Estimate for the current year remains unchanged at $1.82, leading to a Zacks Rank of 3 (Hold) [13][14].

Core Viewpoint - PPL Corporation has shown a mixed performance in the stock market, with a 2.5% increase in shares over the last three months, underperforming the Zacks Utility-Electric Power industry's 5.2% rally, while maintaining strong financial discipline and efficient execution of plans [1][2]. Price Performance - PPL shares have gained 2.5% in the last three months compared to the Zacks Utility-Electric Power industry's 5.2% increase [1]. - The average trading volume for PPL in the last three months was approximately 5.83 million shares per day, significantly higher than DTE Energy's 1.56 million shares [5]. Factors Supporting PPL Stock - PPL's service areas in Pennsylvania and Kentucky are seeing increased demand from data centers, with projected new requests reaching 50 gigawatts (GW) in Pennsylvania and 6 GW in Kentucky between 2026 and 2034 [7]. - The company plans to invest $20 billion from 2025 to 2028 to meet rising demand and improve service quality, with over 60% of this investment benefiting from "contemporaneous recovery" to minimize regulatory lag [8]. - PPL aims to reduce expenses by at least $175 million by 2026 compared to 2021 levels, which is expected to strengthen profit margins [9]. - PPL plans to invest over $8 billion in electric and gas distribution infrastructure between 2025 and 2028 to enhance system reliability [10]. Earnings Estimates - PPL expects earnings per share (EPS) of $1.75-$1.87 for 2025, with the Zacks Consensus Estimate currently at $1.82 per share [11]. - The Zacks Consensus Estimate indicates year-over-year EPS increases of 7.5% for 2025 and 8.26% for 2026 [11]. Earnings Surprise History - PPL has outperformed the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 8.84% [12]. Capital Return Program - PPL continues to return value to shareholders through dividends, with a current annual dividend of $1.09 and projected growth of 6-8% per year through 2027 [14]. - The targeted dividend payout ratio is expected to be in the range of 60-65% [15]. Valuation and Performance Metrics - PPL is currently valued at a premium compared to its industry on a forward 12-month P/E basis [17]. - PPL's trailing 12-month return on equity (ROE) is 9.14%, lower than the industry average of 10.05% [19]. Strategic Outlook - PPL's investments in clean energy generation and infrastructure are expected to support reliable service, aided by efficient operational management and a supportive regulatory environment [21].

ALLENTOWN, Pa., May 16, 2025 /PRNewswire/ -- PPL Corporation (NYSE: PPL) declared a quarterly common stock dividend on Friday, May 16, 2025, of $0.2725 per share, payable Jul. 1, 2025 to shareowners of record as of Jun.10, 2025.About PPLPPL Corporation (NYSE: PPL), headquartered in Allentown, Pennsylvania, is a leading U.S. energy company focused on providing electricity and natural gas safely, reliably and affordably to more than 3.5 million customers in the U.S. PPL's high-performing, award-winning utilit ...

Financial Data and Key Metrics Changes - PPL achieved targeted earnings per share growth of 6% to 8% in 2024 [25] - The common stock dividend was increased by more than 7% in 2024 [26] - PPL's stock price increased by nearly 20% in 2024, ranking among the best performing regulated utility stocks in the U.S. [28] Business Line Data and Key Metrics Changes - PPL completed over $3 billion in planned infrastructure improvements in 2024 to enhance grid reliability and resilience [24] - Achieved annual O&M savings of approximately $130 million from a 2021 baseline, allowing for over $1 billion in capital investments [24][25] Market Data and Key Metrics Changes - PPL serves approximately 3.6 million customers across its service territories [23] - The company is experiencing unprecedented demand growth, particularly in Pennsylvania, with nearly 11 gigawatts of data center load in advanced planning stages [53] Company Strategy and Development Direction - PPL is focused on creating the utilities of the future, emphasizing innovation, efficiency, and advanced technology [29] - The company plans to invest $20 billion from 2025 to 2028 to strengthen reliability and advance a cleaner energy future [31] - PPL is committed to an all-of-the-above technology approach to achieve net zero carbon emissions by 2050 [52] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of affordability in energy services and ongoing engagement with stakeholders to identify opportunities [25] - The company is adapting to challenges in the energy sector, including the need for new technologies and infrastructure to meet growing demand [54] Other Important Information - PPL has implemented a wildfire mitigation plan, including public safety power shutoff policies and updated emergency response plans [62] - The company is actively exploring nuclear power as part of its strategy to achieve net zero emissions, while also considering advanced small modular reactors [56] Q&A Session Summary Question: Why does PPL have so many directors? - The board size is consistent with industry standards, with 10 members, nine of whom are independent, providing a mix of experience and perspectives [39][40] Question: Why does PPL employ so many contractors? - Contractors are used for specialized expertise, seasonal work, and to provide flexibility in scaling operations [43][45] Question: What impact will tariffs have on PPL's partnership with WindGrid? - Tariffs may affect pricing and timing of offshore wind projects, but PPL remains prepared to participate in future opportunities [48][50] Question: How does PPL support the development of nuclear and fusion power? - PPL recognizes the need for nuclear power in achieving net zero emissions and is exploring partnerships for advanced nuclear technologies [56][58] Question: How is PPL addressing wildfire risks? - PPL has developed a wildfire mitigation plan, including updated training and capital projects to enhance safety and reduce risks [62]