PPL Corporation (PPL) is expected to report an improvement in its top line and a decline in its bottom line when it reports first-quarter 2025 results on April 30, before market open. (See the Zacks Earnings Calendar to stay ahead of market-making news)The Zacks Consensus Estimate for PPL’s first-quarter revenues is pegged at $2.38 billion, indicating growth of 3.4% from the year-ago reported figure.The Zacks Consensus Estimate for earnings is pegged at 55 cents per share. The Zacks Consensus Estimate for P ...

Company Performance - PPL's stock closed at $36.25, with a slight increase of +0.03% compared to the previous day, underperforming the S&P 500 which gained 2.03% [1] - Over the past month, PPL's stock has risen by 4.74%, outperforming the Utilities sector's gain of 1.72% and contrasting with the S&P 500's loss of 5.07% [1] Upcoming Earnings - PPL is set to release its earnings report on April 30, 2025, with an expected EPS of $0.55, reflecting a growth of 1.85% year-over-year [2] - The consensus estimate for PPL's revenue is $2.38 billion, indicating a 3.4% increase compared to the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $1.82 per share and revenue at $8.52 billion, representing increases of +7.69% and +0.71% respectively from the prior year [3] - Recent adjustments to analyst estimates suggest a favorable outlook on PPL's business health and profitability [3] Valuation Metrics - PPL has a Forward P/E ratio of 19.93, which is higher than the industry average of 18.31, indicating that PPL is trading at a premium [6] - The company has a PEG ratio of 2.69, compared to the industry average of 2.72, suggesting a similar valuation relative to expected earnings growth [7] Industry Ranking - The Utility - Electric Power industry, which includes PPL, has a Zacks Industry Rank of 34, placing it in the top 14% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - The focus is on generating a 7%+ income yield through investments in energy stocks while minimizing principal loss [1] - The investment strategy includes both traditional and renewable energy sectors, targeting international companies with competitive advantages and strong dividend yields [1] Group 1 - The investment group "Energy Profits in Dividends" aims to provide early access to investment ideas and in-depth research for subscribers [1] - The leader of the group emphasizes managing risk through options while providing micro and macro analysis of energy companies [1] - The coverage of energy sectors has been ongoing since 2010, indicating a long-term commitment to analyzing market trends [1]

For Immediate ReleasesChicago, IL – April 15, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include PPL Corp. (PPL) , Xcel Energy (XEL) and American Electric Power (AEP) Here are highlights from Tuesday’s Analyst Blog:PPL Corp. shares have rallied 9.4% in the last six months against the Zacks Utility-Electric Power indu ...

Core Viewpoint - PPL Corp. has outperformed the Zacks Utility-Electric Power industry and the Zacks Utilities sector, with a 9.4% increase in shares over the last six months, while the industry declined by 2.8% [1][3]. Investment and Infrastructure - PPL plans to invest $20 billion through 2027 to upgrade its infrastructure, reduce outages, and lower its carbon footprint [2][10]. - The company focuses on capital-intensive projects for generation, transmission, and distribution, which have resulted in fewer outages for customers [10][9]. - Over 60% of PPL's capital investment plan allows for "contemporaneous recovery," minimizing regulatory lag on earnings [11]. Emission Reduction Initiatives - PPL aims to reduce carbon emissions by 70% by 2035 and 80% by 2040 from 2010 levels, aligning with international climate goals [12]. - The company plans to achieve carbon neutrality by 2050 through new carbon capture technology and increased renewable energy sources [13][14]. Cost Management - PPL is targeting a reduction of operating and maintenance costs by at least $175 million through 2026, with $130 million in savings already achieved in 2024 [16]. - The company is implementing scalable technologies to further reduce expenses, which is expected to enhance margins and support earnings growth [17]. Earnings and Shareholder Value - PPL expects earnings per share (EPS) of $1.75-$1.87 for 2025, with a consensus estimate of $1.82, indicating year-over-year increases of 7.69% and 7.82% for 2025 and 2026, respectively [18]. - The current annual dividend is $1.09, with projected growth of 6-8% per year through 2027, consistent with earnings growth expectations [19][20]. Valuation - PPL is currently trading at a premium with a forward 12-month P/E ratio of 18.66, compared to the industry average of 13.96 [21]. - The company is expected to benefit from rising energy demand and cost-saving initiatives, which will enhance margins [26].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on PPL, and suggests that while the average brokerage recommendation (ABR) indicates a favorable outlook, investors should exercise caution and consider additional analysis tools like Zacks Rank for better investment decisions [1][4][12]. Brokerage Recommendations - PPL has an average brokerage recommendation (ABR) of 1.57, which is between Strong Buy and Buy, based on recommendations from 15 brokerage firms [2]. - Out of the 15 recommendations, 10 are Strong Buy and 1 is Buy, accounting for 66.7% and 6.7% of all recommendations respectively [2]. Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations have limited success in guiding investors towards stocks with the highest price increase potential [4]. - Analysts often exhibit a positive bias due to the vested interests of their firms, leading to a disproportionate number of favorable ratings compared to negative ones [5][9]. Zacks Rank as an Alternative - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, which are more effective indicators of near-term stock price performance compared to ABR [7][10]. - The Zacks Rank is timely and reflects the latest earnings estimates, unlike the ABR, which may not be up-to-date [11]. Current Earnings Estimates for PPL - The Zacks Consensus Estimate for PPL remains unchanged at $1.82 for the current year, suggesting stable analyst views on the company's earnings prospects [12]. - Due to the unchanged consensus estimate and other factors, PPL holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the favorable ABR [13].

Company Overview - PPL Corporation is a leading U.S. energy company based in Allentown, Pennsylvania, providing electricity and natural gas to over 3.6 million customers [4] Upcoming Earnings Release - PPL Corporation will release its consolidated first-quarter 2025 earnings results on April 30, 2025 [1] - The earnings call will feature PPL's president and CEO, Vincent Sorgi, along with other executives discussing the quarterly results and business outlook [1] Conference Call Details - The conference call will begin at 11 a.m. Eastern Time and will be available via live webcast and telephone [2] - Interested participants can access the webcast at PPL's investor website or join by calling the provided numbers [2] Replay Information - A replay of the conference call, along with presentation slides, will be available for 90 days after the event on PPL's investor website [3]

Core Insights - PPL Electric Utilities has received the 2025 Smart Electric Power Alliance (SEPA) Power Player Resilience Award for its innovative use of predictive failure technology to enhance safety, reliability, and operational efficiency [1][2]. Group 1: Award Recognition - The SEPA Power Player Awards recognize organizations that are leading the transition to a clean and resilient energy future, with PPL Electric being honored for its integration of IND Technology's Early Fault Detection (EFD) system [2]. - The EFD system proactively identifies failing electrical components before they lead to power outages or safety hazards [2]. Group 2: Technology Implementation - PPL Electric's EFD technology employs radio frequency (RF) sensors to continuously monitor power lines, detecting abnormal signals from deteriorating equipment and vegetation interference [3]. - This proactive approach allows PPL Electric to perform maintenance before issues escalate, thereby reducing service interruptions and enhancing safety for customers and utility workers [3][4]. Group 3: Impact and Future Plans - Since deploying the EFD technology, PPL Electric has identified hundreds of hidden infrastructure issues, which will improve reliability and prevent outages for hundreds of thousands of customers [4]. - By the end of 2028, PPL Electric plans to install over 9,000 RF sensors across more than 8,000 miles of distribution lines, aiming to generate operational savings while improving safety and service reliability [5]. Group 4: Company Overview - PPL Electric Utilities provides safe, reliable, and affordable electricity to nearly 1.5 million homes and businesses in eastern and central Pennsylvania, consistently ranking among the top utility companies for reliability and customer satisfaction [6].

Core Viewpoint - PPL is expected to maintain stable earnings performance with an EPS of $0.54 and a revenue of $2.38 billion, reflecting a 3.45% increase year-over-year [2] Group 1: Earnings and Revenue Estimates - For the upcoming earnings release, PPL is projected to report an EPS of $0.54, consistent with the same quarter last year [2] - The full-year Zacks Consensus Estimates predict earnings of $1.82 per share and revenue of $8.46 billion, showing a 7.69% increase in earnings but no change in revenue compared to the previous year [3] - Recent analyst estimate revisions indicate optimism regarding PPL's business and profitability [3] Group 2: Stock Performance and Valuation - PPL's stock closed at $34.60, reflecting a 1.53% increase from the previous day, outperforming the S&P 500's loss of 1.12% [1] - The current Forward P/E ratio for PPL is 18.69, which is higher than the industry average of 17.82 [5] - PPL has a PEG ratio of 2.76, compared to the Utility - Electric Power industry's average PEG ratio of 2.71 [6] Group 3: Industry Context - The Utility - Electric Power industry ranks in the top 25% of all industries, with a Zacks Industry Rank of 61 [7] - The Zacks Rank system indicates that PPL currently holds a rank of 3 (Hold), with a slight decrease of 0.09% in the EPS estimate over the past month [5]

Core Viewpoint - PPL Corporation is positioned favorably in the utility sector with a premium valuation due to its constructive regulatory environment and increasing demand from data centers in its service regions [1][2]. Investment and Infrastructure - PPL plans to invest $20 billion through 2028 to enhance its infrastructure and mitigate outages [2][10]. - Over 60% of PPL's capital investment plan is subject to "contemporaneous recovery," which helps reduce regulatory lag on earnings [10]. Performance Metrics - PPL's shares have increased by 8.2% over the past three months, outperforming the industry average of 5% and the Zacks Utilities sector's return of 4.5% [5]. - The company registered year-over-year electric sales volume increases of 1.1% in Pennsylvania and 1.2% in Kentucky for 2024 [9]. Demand Drivers - The interest from data centers in Pennsylvania and Kentucky is significant, with new requests projected to reach 48 gigawatts (GW) and 6 GW, respectively, from 2026 to 2034 [8]. - New data center connections are expected to lower transmission costs for retail customers, enhancing PPL's service appeal [9]. Earnings and Dividends - PPL's expected EPS for 2025 is between $1.75 and $1.87, with a Zacks Consensus Estimate of $1.82 per share, indicating year-over-year growth of 7.69% for 2025 and 7.93% for 2026 [12][15]. - The company aims to increase its dividend per share by 6-8% annually through 2027, with a current annual dividend of $1.09 and a yield of 3.13% [15]. Profitability and Efficiency - PPL's trailing 12-month return on equity (ROE) is 8.88%, which is below the industry average of 9.75% [16]. - The company is implementing cost-saving initiatives expected to reduce expenses by at least $175 million by 2026 [11]. Strategic Outlook - PPL's focus on clean energy production and grid strengthening is anticipated to enhance service reliability [18]. - The company's operational management and favorable regulatory conditions contribute positively to its strategic positioning [18].