PPL Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component PPL (NYSE:PPL) will unveil its latest earnings on Thursday, November 8, 2012. PPL Corporation is an energy and utility holding company that generates and markets electricity in the northeastern and western U.S.

PPL Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 68 cents per share, a decline of 10.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 69 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 68 cents during the last month. For the year, analysts are projecting profit of $2.36 per share, a decline of 13.6% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 11 cents, coming in at net income of 51 cents a share versus the estimate of profit of 40 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit rose 38.3% to $271 million (46 cents a share) from $196 million (35 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.4% to $2.55 billion from $2.49 billion.

Wall St. Revenue Expectations: Analysts are projecting a decline of 4.5% in revenue from the year-earlier quarter to $2.98 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.16 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 27.9% in the fourth quarter of the last fiscal year and 34.9% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 43.2% in the third quarter of the last fiscal year, more than twofold in the fourth quarter of the last fiscal year and 41.3% in the first quarter before increasing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with eight of 12 analysts surveyed giving that rating.

Stock Price Performance: Between August 9, 2012 and November 2, 2012, the stock price fell 37 cents (-1.3%), from $29.56 to $29.19. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 2, 2012, when shares rose for six straight days, increasing 2.6% (+72 cents) over that span. It saw one of its worst periods between September 13, 2012 and September 20, 2012 when shares fell for six straight days, dropping 1.8% (-54 cents) over that span.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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