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PPL to Report Q3 Earnings: What's in Cards for the Stock?

Improving demand, expected lower debt expenses and new rates are likely to benefit PPL's Q3 results.

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This story originally appeared on Zacks

PPL Corporation PPL is set to release third-quarter 2021 results on Nov 4, before market open. The company witnessed a negative earnings surprise of 21.54% in the trailing four quarters, on average.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

- Zacks

Factors to Consider

Solid demand from the residential players and improving demand from the Commercial and Industrial group owing to economic recovery in its service areas are likely to aid the utility’s upcoming results. New rates, which came into effect from July, are likely to boost revenues in the upcoming results.

Reduction of long-term debt is expected to have lowered its capital-financing costs and is likely to have boosted margins in the third quarter. The company’s divestiture of its U.K. utility business completed in June allowed it to focus on its core U.S. operations, which in turn, might have enhanced its earnings.

Estimate

The Zacks Consensus Estimate for third-quarter earnings is pegged at 35 cents, indicating a decrease of 39.66% from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model doesn’t predict an earnings beat for PPL Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.

 

PPL Corporation Price and EPS Surprise

PPL Corporation Price and EPS Surprise

PPL Corporation price-eps-surprise | PPL Corporation Quote

Earnings ESP: PPL Corp. has an Earnings ESP of +4.29%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, PPL Corp. carries a Zacks Rank #5 (Strong Sell).

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.

Brookfield Infrastructure Partners BIP is set to release third-quarter 2021 results on Nov 3. It has an Earnings ESP of +0.57% and is currently Zacks #3 Ranked at present.

The AES Corporation AES is set to release third-quarter 2021 results on Nov 4. It has an Earnings ESP of +3.53% and a Zacks Rank #3 at present.

TransAlta TAC is set to release third-quarter 2021 results on Nov 9. It has an Earnings ESP of +12.50% and a Zacks Rank of 3, currently.



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PPL Corporation (PPL): Free Stock Analysis Report

 

Brookfield Infrastructure Partners LP (BIP): Free Stock Analysis Report

 

The AES Corporation (AES): Free Stock Analysis Report

 

TransAlta Corporation (TAC): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

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