FMP
Datasets
Market NewsEducationHow ToDiscounted Cash Flow ModelDeveloper

PPL Corporation (NYSE:PPL) Earnings Preview: What to Expect

  • Earnings per share of $0.42 and revenue of approximately $2.42 billion are expected.
  • Wall Street analysts have a bullish outlook, with an average brokerage recommendation (ABR) of 1.66.
  • Concerns include premium valuation and lower return on equity (ROE) compared to industry averages.

PPL Corporation (NYSE:PPL) is set to release its quarterly earnings on February 20, 2026. The company, a major player in the energy sector, is expected to report earnings per share of $0.42 and revenue of approximately $2.42 billion. PPL's operations focus on delivering electricity and natural gas, primarily in the northeastern United States.

Wall Street analysts have a bullish outlook on PPL, with an average brokerage recommendation (ABR) of 1.66, indicating a favorable view. Out of 16 brokerage firms, 10 have rated PPL as a Strong Buy, and one has given it a Buy rating. This positive sentiment suggests that analysts see potential in PPL's stock, which could influence investor decisions.

PPL's expected earnings per share of $0.42 reflects a significant year-over-year increase of 23.53%. This growth may be driven by cost-cutting measures, energy efficiency initiatives, and increased demand for data centers in Pennsylvania, as highlighted by analysts.

Despite these positive projections, PPL's premium valuation and lower return on equity (ROE) might cause some investors to remain cautious. The company trades at a forward price-to-earnings ratio of 19.16, higher than the industry average of 17.17. Additionally, PPL's ROE stands at 9.08%, which is below that of its peers, potentially impacting investor sentiment.

Historically, PPL has had a mixed earnings surprise record, beating the Zacks Consensus Estimate in two of the last four quarters, while missing in the other two. This has resulted in a negative average surprise of 1.02%. As the earnings release approaches, investors will be evaluating whether to buy, hold, or sell the stock based on these factors.