Electric Company PPL Powers Past Q1 Estimates, Eyes Bright Future

PPL Corporation PPL shares are trading higher after first-quarter FY24 operating revenue growth of $2.304 billion, beating the consensus of $2.062 billion.

Electricity sales rose by 4.4% Y/Y, with the PA Regulated segment up 2.0% Y/Y and the KY Regulated segment increased by 7.6% Y/Y.

Operating income increased to $545 million from $498 million in the prior year quarter.  Adjusted EPS was $0.54, beating the consensus of $0.50.

PPL's net cash provided by operating activities in the quarter, totaled $282 million, versus $430 million a year ago.

President and Chief Executive Officer Vincent Sorgi said, “We are on track to complete more than $3 billion in infrastructure improvements this year — part of more than $14.3 billion planned through 2027 — to modernize the grid, strengthen grid resilience against more powerful and frequent severe weather, and advance a safe, reliable, affordable and sustainable energy future for our customers and communities.”

Outlook Reiterated: PPL expects EPS of $1.63 to $1.75 in FY24 versus the $1.70 consensus. 

The company continues to project an adjusted EPS and dividend growth target of 6% to 8% annually through at least 2027.

PPL reaffirmed annual operation and maintenance savings of at least $175 million by 2026, with $120 million-$130 million of annual savings planned by the end of 2024 from the 2021 baseline.

 Investors can gain exposure to the stock via First Trust EIP Carbon Impact ETF ECLN and First Trust North American Energy Infrastructure Fund EMLP.

Price Action: PPL shares are trading higher by 2.09% at $28.04 at the last check Friday.

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