Latest PPL Corp News and Updates
Analyzing US Regulated Utilities’ Total Returns
US mid-size regulated utilities outperformed their bigger counterparts in the past year. Their rally was much steeper—this boosted total returns.
Why Exelon’s recent quarterly earnings were positive
Exelon Corporation (EXC) reported a net income of $440 million in its 2Q14 earnings. The quarterly net income was $14 million lower year-over-year (or YoY).
What Could Impact PPL’s Dividends in the Future?
PPL’s (PPL) management expects fair annual earnings growth of 5%-6% through 2020, which will likely facilitate its dividend growth.
Strong Dollar Will Likely Drag AES Corporation’s 4Q15 Numbers
In 4Q15, AES Corporation is expected to report earnings of $0.33 per share in 4Q15—compared to earnings of $0.41 per share in 4Q14.
How Does PPL Corporation Look ahead of Its 4Q16 Earnings?
PPL projects earnings growth of 6%–8% annually for US utilities for the next few years, while its UK segment’s earnings are expected to be driven by the movement of the British pound.
Analyzing Top Utilities’ Current Valuation
Currently, utilities are trading at a PE (price-to-earnings) multiple of 13x—compared to their historical average valuation of ~14x–15x.
Analysts Expect Huge Upside Potential in PPL Stock
According to analysts’ consensus, PPL (PPL) stock offers a handsome potential upside of ~22% in a year with a mean target price of $33.5.
Will US Utility Mergers and Acquisitions Increase after Brexit?
Investors may prefer to remain safe during turbulent times and could turn to utilities as Brexit becomes a reality.
Which Utility Delivered the Highest Total Returns This Year?
Although utilities’ total returns were dominated mostly by stock appreciation this year, stable and increasing dividends were also an important factor.
Utility Stocks Slipped, Treasury Yields Raced to a Record High
US utility stocks slipped 0.8% on May 15 after ten-year Treasury yields peaked at 3.1%—a seven-year high. Broader markets also corrected 0.7%.
DUK, SO, and PPL: How Are Top US Utilities Valued Currently?
Duke Energy (DUK) has corrected more than 12% since July 2016. The Utilities Select Sector SPDR (XLU) has also witnessed similar weakness during this period.
Investment-Grade Bond Funds Saw Outflows for Third Week in a Row
Investment-grade bond issuance fell to $26.275 billion last week as compared to $32.35 billion in the previous week.
Brexit’s Impact: European Utilities Nosedive, National Grid Gains
The struggling European utilities sector encountered another obstacle in the form of Brexit. Upcoming policy changes will pave the way for them in the future.
Why Investors Flocked to Utilities amid Broader Market Turmoil
The slow-and-steady utilities sector was the top performer yesterday when the broader markets fell 3%.
Analyzing PPL Corporation’s Return on Equity
PPL’s adjusted return on equity usually stays above its US regulated utility peers’ average. It earns higher ROE from its United Kingdom regulated segment.
Millennium Management adds new position in Anixter International
For 1Q14, Anixter’s results beat on earnings, but missed on revenue.
Not All Utility Stocks Are Overpriced
Utility stocks seem overvalued. Utilities have reached record levels. They have been trading at inflated valuations for months.
Why Analysts Are Expecting AES Earnings to Fall in 2Q16
Analysts expect AES (AES) to report earnings of $0.16 per share in 2Q16. In the same quarter last year, it reported earnings of $0.25 per share.
How PPL’s Returns Fared Compared to Its Peers in 2018
PPL (PPL), the top-yielding stock among the S&P 500 Utilities, has underperformed its peers in terms of total returns in 2018.
What Are Analysts’ Price Targets for AES before Its 3Q Results?
According to Wall Street analysts, AES has an estimated upside of 6.5% for the next year with a price target of $12.83. Currently, it’s trading at $12.
Only 2 Power Utilities Gain during a Tough Week for the Sector
The power utilities sector remained under stress last week. The representative of the sector, the Utilities Select Sector SPDR (XLU), dropped by 4.1%.
Must-know: The EPA helped a coal producing region
The Illinois Basin produced ~120 million tons of coal during the 12 months ending September 13, 2014. This was ~65% of the interior region’s total production of 185 million tons during the same period. With estimates reserves of ~50 billion tons, the basin ranks second only to the gigantic PRB.
A Look at PPL’s Price Targets ahead of Its 4Q16 Earnings
The consensus Wall Street analyst price target for PPL (PPL) is $36.47. Its current market price is $34.38, implying a rise of 6.1% over the next year.
GAMCO wants National Fuel Gas to spin off its utility segment
A spinoff? As we discussed in the earlier part of this series, National Fuel Gas’ (NFG) GAMCO believes a standalone utility company can participate in industry consolidation GAMCO Investors proposed in its filing, “We believe that a spin-off of NFG’s local distribution utility segment into a separately traded public company, thus creating two C-corporations (a […]
Where Utility Stocks Could Go amid Valuation Concerns
Utility stocks have been rallying for the last two years amid broader market volatility. The rally in these stocks steepened last year.
Top Dividend Stocks from Utilities to Combat Recession
Recession fears have been hovering over the market throughout this year. However, defensives such as utilities are trading at record highs.
How Utility Stocks Could Fare in 2020 with No Rate Cuts
Utility stocks have been some of the strongest equities this year. The stocks are up approximately 20% this year, in line with the Dow Jones.
Two Top-Yielding Utility Stocks for Uncertain Markets
Generally, investors prefer utility stocks due to their stable dividend-paying capabilities. Currently, they offer an average dividend yield of 3%.
Wholesale electricity prices mirrors natural gas price
With the exception of Texas, wholesale prices in all other US regions were low.
First Energy’s revenue mainly from regulated T&D
First Energy operates in six northeastern U.S. states. This translates to a service territory of 65,000 square miles. These states are allowed deregulation of electricity, but First Energy’s T&D network remains regulated.
US power companies: Comparing valuation multiples
Forward multiples are a useful metric for gauging relative valuation. A higher multiple usually indicates a richer valuation for a company.
Two Top Utilities that Beat Southern Company’s Yield
Among the top utilities, Southern Company’s 4.2% dividend yield beats the peer average of 3%. However, PPL’s yield is 5.6% and Dominion Energy yields 4.8%.
Not All Utility Stocks Look Expensive Right Now
The unusual rally in utility stocks has pushed them to record valuation multiples this year. On average, they’re currently trading at 19 times their forward earnings!
Which Utility Stocks Have the Highest Dividend Yields Right Now?
The utilities sector continues to offer a premium dividend yield along with stable upward price movement. On average, utility stocks are currently yielding 3.2%, while broader markets offer a yield close to ~2%.
DUK, SO, and PPL: Analyzing Top-Yielding Utility Stocks
Utility stocks (XLU) are currently trading at a dividend yield of 3.1%, higher than broader markets.
Four Top-Yielding Stocks from S&P 500 Utilities
Currently, utilities (XLU) offer a yield of 3.3%, which implies a spread of almost 50 basis points to the benchmark ten-year Treasury yield.
Analyzing How Utilities Performed Last Week
Last week, utilities started on a weak note. The Utilities Select Sector SPDR ETF (XLU) fell marginally, while the S&P 500 rose almost 3%.
Comparing PPL’s Dividend Yield with Peers’
In this series, we’ll look PPL (PPL), the highest-yielding utility stock.
Here Are the S&P 500 Utility Stocks with the Best Dividends
Slow and stable utility stocks have outperformed broader markets so far this year.
These S&P 500 Utilities Have Delivered the Best Five-Year Returns
In this series, we’ll look at the S&P 500 Utilities stocks that have generated the highest total returns over the past five years.
Is Exelon Trading at a Discount Compared to Its Peers?
Exelon’s (EXC) EV-to-EBITDA (enterprise value-to-EBITDA) multiple is 7.57x.
Where PPL Stock Might Go from Here
PPL Corporation (PPL) stock has rallied more than 11% in the last month, outperforming utilities at large.
PPL: Analysts’ Views and Target Prices
PPL (PPL) stock offers an attractive potential upside of more than 13% in a year with a mean target price of $32.3. PPL stock is trading at $28.5.
PPL’s Total Returns versus Peers
PPL Corporation (PPL) stock has returned -21% in the last year. The underperformance was largely due to its stock falling in the last few months.
PPL’s Dividend Yield, Growth, Payout Ratio, and More
PPL’s dividend yield rose significantly—mainly because of its steep stock fall. It’s currently trading at a dividend yield of 6%, compared to its peers’ (XLU)(IDU) average yield of 4.3%.
What PPL’s Current Valuation Means for the Stock
PPL Corporation (PPL) stock was particularly hit by the recent utilities turmoil. Its valuation fell significantly over the last few months.
PPL’s Price Target and Wall Street Analysts’ Views
According to Wall Street analysts’ consensus, PPL (PPL) stock offers attractive potential upside of more than 16% in a year with a mean target price of $32.4. Currently, PPL stock is trading at $27.9.
A Look at PPL’s Current Dividend Yield and Recent Performance
Pennsylvania-based PPL Corporation (PPL) stock fell more than 20% in the last three months.
S&P 500 Utilities: A Look at Last Week’s Leaders and Laggards
US utility stocks have corrected roughly 11% in the last three months since the last rate hike in December 2017.
What a Steep Rise in PPL’ s Implied Volatility Could Mean
On March 7, 2018, PPL’s (PPL) implied volatility reached almost 30%—notably higher than its 15-day average.
Analyzing Institutional Ownership in PPL
The Vanguard Group holds more than 7% of PPL’s (PPL) total outstanding shares, according to its latest filing on March 31, 2017.
A Look at PPL Corporation’s Rate Base Growth
PPL Corporation’s (PPL) projected 5% annual rate base growth is expected to drive its EPS growth in the next few years.
PPL’s Dividend: One of the Most Admirable Yields in the Sector
PPL’s dividend yield is among the highest in the sector. Top utilities such as Duke Energy and Southern Company are also currently trading at respective yields of ~4.5%.
Is PPL Trading More Cheaply Than Its Peers?
PPL has corrected more than 13% in 2H16. On November 23, PPL was trading at an enterprise value to earnings before interest, tax, depreciation, and amortization multiple of 10.2x.
A Look at US Utilities’ Return on Equity
Duke Energy’s (DUK) adjusted return on equity stayed below 8% due to volatile earnings from international operations. This ROE was on the lower side of the industry average.
What Are Analysts’ Price Targets for DUK after 3Q16 Earnings?
The consensus Wall Street analyst price target for Duke Energy (DUK) is $82.38. Its current market price is $77.82, implying a rise of 6% over the next year.
PPL against Its Peers: Where Does Its Valuation Stand?
PPL (PPL) corrected 1.0% after it released its third-quarter earnings on November 1, 2016. The Utilities Select Sector SPDR ETF (XLU) corrected nearly 2.0% that day.
Returns of Utility Stocks with High and Low Implied Volatilities
NRG Energy (NRG) has the highest implied volatility of all the utility companies that make up the Utilities Select Sector SPDR ETF (XLU).
Duke Energy’s Valuation: Are Utilities Becoming Cheap?
Duke Energy corrected more than 10% since July 2016. It’s trading at an EV-to-EBITDA multiple of 10.4x—slightly overvalued compared to the industry average.
Is PPL Trading Cheap Enough for You to Buy?
PPL Corporation’s (PPL) stock witnessed severe pressure after the Brexit vote.
How Are Institutional Investors Playing PPL?
PPL has huge exposure to UK operations, as it derives more than 65% of its total earnings.
PPL, DUK, and SO: Analyzing Utilities’ Current Valuations
Investors may overlook PPL Corporation (PPL) despite being relatively cheaper than its peers. The Brexit vote may negatively impact its cash flows due to its significant operations in the UK.
A Look at AES’s Dividend Yield
AES’s (AES) dividend yield has improved significantly in the last couple of years. The 10% fall in dividends in 2016 is among one of the highest in the industry.
What Do Southern Company’s Short Interest and Technicals Suggest?
According to a recent report, short interest in Southern Company has risen 1.4% as of September 15, 2016.
What Institutions Are Doing with Their Holdings in XLU
Institutional investors raised their stake in the Utilities Select Sector SPDR ETF (XLU) in the last couple of months.
Expect US Electricity Consumption to Fall in 2016
According to the EIA’s Short-Term Energy Outlook for August 2016, retail electricity sales to the residential sector during June–August 2016 will be 3% higher compared to the same period in 2015.
How Do Brokers Look at PPL after Its 2Q16 Earnings?
According to Wall Street analysts’ estimates, PPL Corporation (PPL) has a price target of $38.71—compared to its current market price of $35.91.
Analyzing Duke Energy’s Sales and Customer Growth Trends in 2Q16
Duke Energy (DUK) continued to see flattish retail load growth in the second quarter of 2016.
Duke Energy’s 2Q16 Earnings Rise by 13% Year-over-Year
Duke Energy (DUK) posted its 2Q16 earnings on August 4, 2016. It reported 13% rise in its earnings year-over-year and earned $1.07 per share in the reported quarter.
Analyzing Duke Energy’s Customer and Volume Trends
Duke Energy is expected to keep up its sales growth largely by expanding its customer base. Every 1% rise in sales growth can be translated to 2% EPS growth.
Richard Bernstein on Profits Recession and Portfolio Positioning
According to Richard Bernstein, cyclical stocks tend to do better than stable growth companies in earnings-driven bull markets.
US Electricity Consumption Growth to Stay Lower through 2040
The EIA forecast that electricity demand will likely grow in the long term, but the growth rate will stay lower. It slowed continuously over the last 60 years.
AES Has Paid Handsome Dividends, But Can It Continue?
AES Corporation’s management forecasts that its cash flow will grow significantly in 2016—enough to support its projected annual dividend increase of 10%.
What Does PPL Corporation’s Short Interest Indicate?
During mid-May 2016, short interest in PPL decreased, likely reflecting a bullish sentiment of investors in the short term.
Does PPL Have an Optimum Hedge to Combat Currency Headwinds?
To combat currency headwinds, PPL has hedged 93% of this in the current year, 89% in 2017, and 41% of 2018.
Inside PPL Corporation’s Debt Profile in 1H16
At the end of the first quarter of 2016, PPL’s total debt stood at $19.8 billion. Of this amount, $18 billion was long-term debt.
How PPL Plans to Power Superior Earnings Growth
PPL Corporation (PPL) is targeting 6.3% annual earnings growth in 2016, which is on the high side of the industry average.
Inside PPL Corporation’s Pure-Play Regulated Status, with Global Presence
PPL Corporation (PPL) turned into a pure-play regulated utility in 2015 and draws more than 60% of its consolidated earnings from operations in the UK.
Richard Bernstein: Corporate Profit Cycle May Be Turning
In an interview with CNBC’s Michael Santoli, Richard Bernstein noted that the US corporate universe has been in a profit recession for three or four quarters.
Divesting Merchant Generation to Improve AEP’s Risk Profile
American Electric Power’s (AEP) Vertically Integrated Utilities segment plays a key role in driving its performance, accounting for more than half of its total operating income.
Why Is Sempra Targeting Elaborate Earnings Growth?
Sempra provided flat to negative earnings guidance for 2016 based on its LNG terminal development and the weak outlook from its international segment.
NextEra’s Growing Customer Base Offsets Its Revenue Headwinds
NextEra Energy has posted nearly flat revenues in the last eight years. It derives over 70% of its total revenues from its regulated business operations.
PPL’s Focus on Regulated Operations Bodes Well for Its Dividends
PPL segregated its unregulated business from its regulated business in 2015. The strategic move may have a positive impact on the company’s earnings.
PEG Sees Bright Future with a Focus on Transmission
Public Service Enterprise Group (PEG) is one of the largest and oldest utilities in North America. Its aging infrastructure has become a serious obstacle in its growth over the last couple of years.
S&P Upgraded PPL after the Separation of Its Unregulated Business
Debt profile PPL (PPL) is looking to strengthen its regulated business by investing $18 billion in the next five years. This funding will mainly be done by long-term debt financing. As of September 30, 2015, the company has total debt of $19.7 billion against equity of $10.2 billion. Of this total debt, $17.7 billion is long-term debt. […]
An Analysis of the Operating Structure of PPL
PPL is concentrated in the UK. It manages utility operations through PPL Global, PPL Electric, Louisville Gas and Electric, and Kentucky Utilities.
What Are Exelon’s Key Risk Factors?
In the last few years, Exelon’s (EXC) long-term borrowing has increased and pushed leverage upwards.
American Electric Power’s Balanced Geographical Revenue Mix
American Electric Power has a geographically diversified market combination, with a major chunk of its revenue coming from its homeland Ohio.
Analyzing Exelon’s Key Revenue Drivers
Demand growth for electricity in the last decade has been sluggish due to increasingly energy-efficient devices and equipment.
Utilities Continue to Underperform and Exelon Is No Exception
Exelon (EXC) is a dominant energy player in the US that operates in energy generation, transmission, and delivery.
Utility Was the Second Biggest Drag on SPY as NRG Energy Crashed
The six-month beta of the stocks of AES, PPL, Public Service Enterprise, and Entergy was less than one. Meanwhile, NRG Energy’s six-month beta was around one.
The Fed’s Cautious Projections Lift Utilities Stocks and ETFs
Last week was crucial for utilities stocks, as the Federal Reserve Open Market Committee met to chart the path of monetary policy.
Henry Hub Natural Gas Benchmark Price Falls to 1 Cent above $3
Despite the neutral inventory report, natural gas prices fell marginally during the week ended March 6. The Henry Hub benchmark price dropped.
Illinois Basin coal prices dropped in November
The Illinois Basin covers most of Illinois and parts of Ohio and western Kentucky. The region produces bituminous coal with a heat value ranging from 10,000–12,500 British thermal units per pound.
Why National Fuel Gas’s Utility segment’s earnings are down
National Fuel Gas (NFG), which is seeing activism from GAMCO Investors, noted in its latest fiscal 3Q14 results that its earnings growth was driven by higher earnings in the Midstream and Upstream businesses.
Must-know: Why the electric utilities industry is important
The electric utilities industry is important for the economy because all businesses require electricity to operate. The EIA predicts that electricity demand in the U.S. will increase by 29% from 2012 to 2040. It will require more electricity to be generated.
Must-know: The supply chain delivers electricity
The industry’s supply chain consists of three broad categories—generation, transmission, and distribution. Power generation requires a fuel source—for example, coal, nuclear, natural gas, or wind—and a power plant to convert the fuel source into electricity.