The 10-second takeaway
For the quarter ended March 31 (Q1), PPL whiffed on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share expanded. GAAP earnings per share dropped significantly.
Margins increased across the board.
PPL recorded revenue of $2.46 billion. The four analysts polled by S&P Capital IQ predicted net sales of $3.46 billion on the same basis. GAAP reported sales were 40% lower than the prior-year quarter's $4.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.71. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.70 per share. Non-GAAP EPS of $0.71 for Q1 were 1.4% higher than the prior-year quarter's $0.70 per share. GAAP EPS of $0.65 for Q1 were 30% lower than the prior-year quarter's $0.93 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 43.7%, 940 basis points better than the prior-year quarter. Operating margin was 28.2%, 250 basis points better than the prior-year quarter. Net margin was 16.8%, 360 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.72 billion. On the bottom line, the average EPS estimate is $0.46.
Next year's average estimate for revenue is $11.95 billion. The average EPS estimate is $2.36.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 411 members out of 425 rating the stock outperform, and 14 members rating it underperform. Among 95 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give PPL a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PPL is hold, with an average price target of $31.35.
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