NYSE$PPL

PPL Corp · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported mixed second-quarter 2021 earnings, announced net-zero carbon emissions goal, and continued to advance strategic repositioning.

PPL Corporation reported second-quarter 2021 GAAP earnings of $19 million, or $0.03 per share, compared to $344 million, or $0.45 per share, in the same quarter of the previous year. Non-GAAP earnings from ongoing operations were $147 million, or $0.19 per share, compared to $159 million, or $0.20 per share, a year ago. The company continues to advance its strategic repositioning, including completing the sale of its U.K. utility business and progressing with the acquisition of Narragansett Electric.

  • Advanced strategic repositioning with the sale of U.K. utility business completed and Narragansett Electric acquisition on track.
  • Announced a plan to repurchase approximately $500 million in PPL shares in 2021.
  • Set a new 2050 net-zero carbon emissions goal, targeting 80% reduction by 2040 and 70% reduction by 2035.
  • Strengthened balance sheet by retiring $3.5 billion in corporate debt.

Headline financials

Total Revenue

$1.29B

Previous: $1.74B-25.9%
EPS (adj)

$0.19

Previous: $0.55-65.5%
Capital Expenditures

-$969M

Previous: -$1.58B+38.5%
Free Cash Flow

-$950M

Previous: -$1.23B+22.9%
Net Income

$19M

Previous: $344M-94.5%
Operating Income

$270M

Previous: $595M-54.6%
Gross Profit

$1.09B

Previous: $1.6B-31.8%
Cash & Equivalents

$7.63B

Previous: $1.28B+496.9%
Total Assets

$36.8B

Previous: $46.5B-21.0%

Revenue & EPS history

PPL · Revenue · Quarterly

$1.29B

Q2 2021-25.9%vs Q2 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Forward guidance

PPL will seek to build on its momentum in the remainder of 2021 while continuing to lay a strong foundation for long-term growth and success.

Tailwinds

  • Achieved exceptional value for the U.K. assets.
  • Strengthened balance sheet by retiring $3.5 billion in corporate debt.
  • Advanced the process to acquire The Narragansett Electric Company in Rhode Island with several key approvals.
  • Accomplished key priorities in our Kentucky rate review.
  • Delivered electricity and natural gas safely and reliably.

Headwinds

  • Second-quarter 2021 reported earnings decreased compared to the previous year.
  • Net loss reported for the first six months of 2021.
  • Special items impacted reported earnings, including a U.K. tax rate change and a loss on the early extinguishment of debt.
  • Lower peak transmission demand affected earnings in the Pennsylvania Regulated segment.
  • Higher interest expense primarily due to interest costs reflected in Corporate and Other in 2021

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.2%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.4%

Avg return

30 days after

50%

36 / 72 earnings

Positive

+4.8%

Q2 2020

Best reaction

-4.7%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.3%-3.3%
Q4 2025+1.5%+3.5%-1.1%
Q3 2025+0.3%+1.6%-6.6%
Q1 2025+0.3%-0.3%-4.5%
Q4 2024-0.3%-0.9%+1.1%
Q3 2024-1.5%-0.0%+7.3%
Q2 2024-0.9%+0.6%+5.3%
Q1 2024+1.7%+2.3%+6.8%
Q4 2023-0.1%+1.6%+0.7%
Q3 2023+2.7%+5.0%+7.2%
Q2 2023-2.0%-1.5%-7.0%
Q1 2023+0.9%+0.2%-6.9%
Q4 2022-2.2%-2.6%-5.7%
Q3 2022+0.8%+0.4%+9.8%
Q2 2022-1.7%-3.3%-0.5%
Q1 2022+1.2%-2.1%+3.3%
Q4 2021-4.7%-7.2%-5.2%
Q3 2021-2.0%-1.9%-2.2%
Q2 2021+2.8%+1.7%+5.8%
Q1 2021+1.1%+1.5%+0.2%
Q4 2020-1.4%-2.1%+5.4%
Q3 2020-1.1%+6.5%+2.5%
Q2 2020+4.8%+7.0%+2.2%
Q1 2020+4.0%+1.1%+23.7%
Q4 2019-1.0%-3.3%-24.4%
Q3 2019-0.5%+0.7%+2.5%
Q2 2019+2.8%+1.4%+3.9%
Q1 2019+0.4%-0.4%-4.3%
Q4 2018-1.5%-0.7%+5.9%
Q3 2018+1.4%+2.0%+0.6%
Q2 2018-1.6%-0.7%+6.5%
Q1 2018+0.9%-4.3%-6.0%
Q4 2017+0.8%-3.1%-9.9%
Q3 2017-1.8%-2.8%-3.4%
Q2 2017-0.4%-0.3%+0.4%
Q1 2017+1.4%+1.0%+5.5%
Q4 2016+1.3%+1.1%+5.3%
Q3 2016-1.3%-0.9%-3.6%
Q2 2016-1.7%-1.0%-4.6%
Q1 2016+2.1%
Q4 2015-1.4%
Q3 2015+2.9%
Q2 2015-0.9%
Q1 2015+1.6%
Q4 2014-1.7%
Q3 2014+3.6%
Q2 2014+0.0%
Q1 2014+1.4%
Q4 2013+0.8%
Q3 2013-0.1%
Q2 2013+0.5%
Q1 2013-1.6%
Q4 2012-0.2%
Q3 2012+1.3%
Q2 2012+3.7%
Q1 2012+0.4%
Q4 2011-0.6%
Q3 2011-0.3%
Q2 2011-0.6%
Q1 2011-0.1%
Q4 2010+0.3%
Q3 2010-0.5%
Q2 2010+1.8%
Q1 2009+0.2%
Q1 2010+1.4%
Q4 2007+0.4%
Q4 2009+0.4%
Q3 2008-2.1%
Q3 2009-2.1%
Q2 2009-0.3%
Q2 2008-0.3%
Q4 2008-0.3%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro