PPL Corporation (PPL) is scheduled to report its Q2 2012 results on August 8, 2012, before market opens. The Street expects EPS and revenue of $0.41 and $2.24B, respectively.
In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from PPL, and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has met or beaten analysts' estimates in the last six quarters. In the last quarter, it reported $0.70 EPS, beating analyst estimates of $0.66.
The consensus EPS estimate for the second quarter is $0.41 based on 13 analysts' estimates, down from $0.45 a year ago. Revenue estimates are $2.24B, down from $2.49B a year ago. The median target price by analysts for the stock is $29.00.
Average recommendation: Hold
- On August 3, 2012, PPL Electric Utilities said it has completed its third and final solicitation for solar renewable energy credits on July 16, 2012, which will help the company provide power from alternative energy sources for residential customers who elect to remain on the utility's default electric supply.
- On July 12, 2012, PPL Electric Utilities announced it has ranked highest among large electric utilities in the eastern United States for residential customer satisfaction in a study by J.D. Power and Associates.
- On April 9, 2012, PPL Corp. announced that it plans to make a registered underwritten public offering of 9,900,000 shares of its common stock. In conjunction with this offering, the underwriters will be granted an option to purchase up to an additional 1,485,000 shares of the Company's common stock solely to cover over-allotments, if any. Subject to certain conditions, all shares will be offered in connection with the execution by the Company of the forward sale agreements described below.
- On March 28, 2012, PPL Corp. announced that the Board of Directors has elected William H. Spence chairman of the Company, effective April 1, 2012. The Company had previously announced that James H. Miller would retire as chairman and a member of the board on March 31, 2012.
- On February 27, 2012, PPL Corp. announced that it is maintaining the existing fiscal 2012 earnings guidance range of $2.15 per share to $2.45 per share, with a midpoint of $2.30 per share.
- On February 27, 2012, PPL Corp. announced that on February 23, 2012, PPL Generation, LLC, its competitive generation subsidiary, agreed to acquire AES Ironwood, L.L.C. and AES Prescott, L.L.C., which together own and operate the 705-megawatt AES Ironwood combined-cycle natural gas-fired power plant in Lebanon, Pa., from a subsidiary of The AES Corporation.
- On February 10, 2012, PPL Corp. announced its fiscal 2012 earnings forecast range of $2.15 per share to $2.45 per share (EPS), with a midpoint of $2.30 per share. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $2.41 for fiscal 2012.
American Electric Power (AEP), Duke Energy (DUK), Consolidated Edison (ED), Exelon (EXC), and PG&E (PCG) are other utility companies which I chose for comparison with PPL Corporation, and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.
Competitors' Latest Developments
- On August 2, 2012, Duke Energy Corp announced that the Company remains on track to achieve fiscal 2012 adjusted earnings guidance range of $4.20-$4.35 per share for the combined company, as adjusted for the one-for-three reverse stock split.
- On August 2, 2012, Duke Energy Corp announced that the law firm of Lieff, Cabraser, Heimann & Bernstein, LLP announces that class action litigation has been brought on behalf of all persons who purchased the common stock of Duke Energy Corporation between June 11, 2012 and July 9, 2012, inclusive (Class Period), purchased or otherwise acquired Duke Energy common stock pursuant to the Company's July 7, 2011 Prospectus and Registration Statement and exchanged shares of Progress Energy, Inc. common stock for shares of Duke Energy stock in connection with the merger with Progress.
- On August 1, 2012, Exelon Corp announced that it has delivered on financial and operating commitments with solid second quarter earnings, and reaffirmed fiscal 2012 operating earnings guidance of $2.55 to $2.85 per share.
- On July 31, 2012, Consolidated Edison Development (CED), a wholly owned subsidiary of Consolidated Edison, Inc., and GCL Solar Energy Inc. (GCL Solar), a wholly owned subsidiary of GCL-Poly Energy Holdings Limited announced the completion of CED's acquisition of two solar photovoltaic projects totaling 92 megawatts MD DC (70 megawatts AC) from GCL Solar.
- On July 28, 2012, Law Offices of Howard G. Smith announced that it is investigating potential claims against Duke Energy Corporation, concerning possible violations of federal securities laws in connection with Duke's merger (Merger) with Progress Energy Inc. (Progress).
- On July 26, 2012, The Investment Losses and Shareholder Rights Law Firm Gilman Law LLP announced that it is investigating potential breach of fiduciary duty claims on behalf of shareholders of Duke Energy Corp. against the board of directors of Duke in connection with their efforts to merge the Company with Progress Energy, Inc. (Progress).
- On July 26, 2012, Glancy Binkow & Goldberg LLP announced that it is investigating potential claims on behalf of all those who acquired the common stock of Duke Energy Corporation, in connection with Duke's merger (Merger) with Progress Energy Inc. (Progress), and all persons who purchased or otherwise acquired Duke common stock between June 28, 2012, and July 9, 2012.
- On July 26, 2012, Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, announced it is investigating extending the class period in the Duke Energy Corp (Duke) and Progress Energy, Inc. (Progress Energy) securities class-action lawsuit, which currently is limited to investors who acquired New Duke shares as part of the companies' merger or who purchased DUK common stock between June 28, 2012 and July 9, 2012.
- On July 25, 2012, Exelon Corp announced that it has declared a regular quarterly dividend of $0.525 per share on Exelon's common stock. The dividend is payable on Sept.
- On July 25, 2012, Law Firm Of Kessler Topaz Meltzer & Check, LLP announced that a class action lawsuit was filed in the United States District Court for the Eastern District of North Carolina on behalf of those who acquired the common stock of Duke Energy Corp (Duke or the Company), in connection with the Company's merger with Progress Energy Inc. (Progress) (the Merger), and on behalf of all persons who purchased or otherwise acquired Duke common stock between June 28, 2012 and July 9, 2012 (the Class Period), inclusive.
- On July 20, 2012, American Electric Power announced that earnings guidance for fiscal 2012 remains suspended because of the ongoing Ohio regulatory proceedings. The Company's earnings performance was strong for the first half of 2012, but it faces challenges for the remainder of the year, including customer switching in Ohio.
- On July 12, 2012, Reuters reported that Duke Energy Corp is under regulatory scrutiny over the abrupt ouster of its CEO, is not expected to be forced to undo its purchase of Progress Energy, but could face a cold reception when it seeks new power rates in North Carolina later this year.
- On July 12, 2012, Exelon Corp's Constellation announced it has renewed and extended for two years an agreement to supply competitively priced electricity to the state of New Jersey.
- On July 11, 2012, Block & Leviton LLP, a Boston-based law firm representing investors nationwide, announced that it is investigating possible breaches of fiduciary duties by the Board of Directors of Duke Energy Corporation (Duke Energy or the Company) in connection with its merger with Progress Energy Inc. (Progress Energy) and the subsequent ouster of Chief Executive Officer Bill Johnson (Johnson).
- On July 7, 2012, Reuters reported that North Carolina officials late on July 6, 2012, launched two investigations into the surprising move by Duke Energy Corp directors to replace former Progress Energy Chief Executive Bill Johnson with Duke CEO Jim Rogers, just a day after a deal to create the largest U.S. utility company was finalized.
- On July 3, 2012, Duke Energy announced the closing of its previously announced merger with Progress Energy Inc., effective July 2, 2012. The new Company will be known as Duke Energy and will remain headquartered in Charlotte, with substantial operations in Raleigh, N.C. Duke Energy will trade on the New York Stock Exchange under the symbol DUK. In accordance with the terms of the merger agreement, Progress Energy Inc. has become a wholly owned direct subsidiary of Duke Energy.
- On July 3, 2012, Duke Energy announced that it had an adjusted diluted EPS guidance range of $1.40 to $1.45 for fiscal 2012. With the 1-for-3 reverse stock split, which was completed in connection with the merger, this stand-alone guidance range becomes $4.20 to $4.35 per share.
- On July 3, 2012, Dow Jones reported that Duke Energy Corp.'s Latin American subsidiary Duke Energy International acquired bankrupt Chilean Campanario power plant from private-equity fund Southern Cross Group for $86.2 million.
- On June 26, 2012, Duke Energy announced that it has declared a quarterly cash dividend on its common stock of $0.255 per share, an increase of a half-cent over the previous level.
- On June 21, 2012, PG&E Corporation announced that it declared its second quarter 2012 regular cash dividend of $0.455 per share on the Corporation's common stock. The dividend is payable on July 15, 2012 to shareholders of record on July 2, 2012.
- On June 14, 2012, Exelon Corp announced that Marshall County and Toluca, Ill have chosen Constellation, a longtime competitive energy provider in Illinois with 1 million customers nationwide, to supply residents with low-cost hydroelectric energy following a competitive bidding process under the state`s electricity choice aggregation program.
- On June 7, 2012, Exelon Corp announced that as previously expected, fiscal 2012 earnings guidance continues to be $2.55 to $2.85 a share, which does reflect the impact of the ICC rate order.
The stock has a market capitalization of $16.63B and is currently trading at $28.68 with a 52 week range of $25.00 - $30.27. The stock's year-to-date performance has been 0.03%. It is currently trading above 20, 50 and 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.