The 10-second takeaway
For the quarter ended Dec. 31 (Q4), PPL crushed expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share contracted.
Margins dropped across the board.
PPL tallied revenue of $4.22 billion. The seven analysts polled by S&P Capital IQ looked for net sales of $2.87 billion on the same basis. GAAP reported sales were much higher than the prior-year quarter's $1.86 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 $0.70. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.62 per share. GAAP EPS of $0.70 for Q4 were 4.1% lower than the prior-year quarter's $0.73 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 28.7%, 1,850 basis points worse than the prior-year quarter. Operating margin was 20.4%, 1,410 basis points worse than the prior-year quarter. Net margin was 9.5%, 960 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.01 billion. On the bottom line, the average EPS estimate is $0.65.
Next year's average estimate for revenue is $11.45 billion. The average EPS estimate is $2.38.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 371 members out of 381 rating the stock outperform, and 11 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give PPL a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PPL is outperform, with an average price target of $31.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.