TransAlta Corporation engages in the development, production, and sale of electric energy. It operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments. The Hydro segment holds interest of approximately 922 megawatts (MW) of owned hydroelectric generating capacity located in Alberta, British Columbia, and Ontario. The Wind and Solar segment has a net ownership interest of approximately 2,057 MW of owned wind and solar electrical-generating capacity, as well as battery storage facilities located in Alberta, Ontario, New Brunswick, and Québec in Canada; the states of Massachusetts, Minnesota, New Hampshire, North Carolina, Pennsylvania, Washington, and Wyoming in the United States; and the state of Western Australia. The Gas segment has a net ownership interest of approximately 2,775 MW of owned gas electrical-generating capacity, and facilities located in Alberta, Ontario, Michigan, and the state of Western Australia. The Energy Transition segment has a net ownership interest of approximately 671 MW of owned coal electrical-generating capacity, as well as operates the Skookumchuck hydro facility in Centralia; and engages in the highvale mine and the mine reclamation activities. The Energy Marketing segment is involved in the trading of power, natural gas, and environmental products. It serves customers in various industry segments, including commercial real estate, municipal, manufacturing, industrial, hospitality, finance, and oil and gas. TransAlta Corporation was founded in 1909 and is headquartered in Calgary, Canada.

TransAlta Corporation

TransAlta TAC is committed to being a leader in clean electricity by delivering customer-centered power solutions. The company is well-positioned to shift toward a low-carbon future, owing to its focus on sustainable energy projects. Given its growth opportunities, TAC makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a promising investment pick at the moment.
TAC’s Growth Projections
The Zacks Consensus Estimate for 2025 earnings per share (EPS) has remained unchanged in the past 30 days at 35 cents.
The Zacks Consensus Estimate for 2026 EPS has increased 12% to 28 cents in the past 30 days.
TAC’s Solvency
The times interest earned (TIE) ratio is a solvency ratio. It is used to measure how well the company can cover its interest obligations. The TIE ratio at the end of first-quarter 2025 was 1.3, which being greater than one indicates that TransAlta is in a good position to meet its interest obligations.
TAC’s Dividend History
The company has been consistently increasing the value of its stockholders through regular dividends. TAC has raised dividends 12 times in the past five years. Its current dividend yield is 1.65%, better than the Zacks S&P 500 Composite's average of 1.19%.
TAC’s Share Repurchase Program
TransAlta is actively pursuing a share repurchase program as part of its capital allocation strategy to enhance shareholder value. The company has repurchased 1.9 million shares year to date at an average cost of $12.42 per share.
TAC’s Growth Strategy
TransAlta is prioritizing the development of renewable energy projects tailored to meet the specific needs of customers, including storage solutions. TAC has set targets to deliver 1.75 gigawatt (GW) of incremental renewables capacity by the end of 2028, with a targeted investment of $3.5 billion. The company aims to expand its development pipeline to 10 GW by 2028, focusing on customer-centered renewables and storage.
TAC’s Stock Price Performance
In the past three months, TransAlta’s shares have risen 32.5% against the industry’s decline of 0.6%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are NiSource NI, sporting a Zacks Rank #1 (Strong Buy), and NRG Energy NRG and CenterPoint Energy CNP, both holding a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
NI’s long-term (three to five years) earnings growth rate is 7.88%. The company delivered an average earnings surprise of 24% in the last four quarters.
NRG’s long-term earnings growth rate is 16.2%. The Zacks Consensus Estimate for NRG’s 2025 EPS implies a year-over-year improvement of 17%.
CenterPoint Energy’s long-term earnings growth rate is 7.76%. The Zacks Consensus Estimate for CNP’s 2025 EPS implies a year-over-year increase of 8%.
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Here's Why You Should Add TransAlta Stock to Your Portfolio Now

Looking at the universe of stocks we cover at Dividend Channel, on 2/28/25, TransAlta Corp (Symbol: TAC), Ashland Inc (Symbol: ASH), and TriMas Corp (Symbol: TRS) will all trade ex-dividend for their respective upcoming dividends. TransAlta Corp will pay its quarterly dividend of $0.06 on 4/1/25, Ashland Inc will pay its quarterly dividend of $0.405 on 3/15/25, and TriMas Corp will pay its quarterly dividend of $0.04 on 3/7/25. As a percentage of TAC's recent stock price of $10.62, this dividend works out to approximately 0.56%, so look for shares of TransAlta Corp to trade 0.56% lower — all else being equal — when TAC shares open for trading on 2/28/25. Similarly, investors should look for ASH to open 0.63% lower in price and for TRS to open 0.18% lower, all else being equal.
Below are dividend history charts for TAC, ASH, and TRS, showing historical dividends prior to the most recent ones declared.
TransAlta Corp (Symbol: TAC):
Ashland Inc (Symbol: ASH):
TriMas Corp (Symbol: TRS):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.26% for TransAlta Corp, 2.51% for Ashland Inc, and 0.72% for TriMas Corp.
In Wednesday trading, TransAlta Corp shares are currently down about 1.5%, Ashland Inc shares are off about 0.5%, and TriMas Corp shares are up about 1.5% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: TransAlta, Ashland and TriMas

The NASDAQ 100 After Hours Indicator is down -7.86 to 21,606.22. The total After hours volume is currently 163,864,953 shares traded.
The following are the most active stocks for the after hours session:
AT&T Inc. (T) is -0.03 at $26.59, with 5,151,310 shares traded. Over the last four weeks they have had 3 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2025. The consensus EPS forecast is $0.56. , following a 52-week high recorded in today's regular session.
Bank of America Corporation (BAC) is unchanged at $44.81, with 5,131,215 shares traded. Over the last four weeks they have had 4 up revisions for the earnings forecast, for the fiscal quarter ending Sep 2025. The consensus EPS forecast is $0.97. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
NextEra Energy, Inc. (NEE) is -0.03 at $71.55, with 3,201,435 shares traded. As reported by Zacks, the current mean recommendation for NEE is in the "buy range".
TransAlta Corporation (TAC) is unchanged at $10.90, with 3,155,449 shares traded. As reported by Zacks, the current mean recommendation for TAC is in the "buy range".
Pfizer, Inc. (PFE) is -0.11 at $26.19, with 3,117,961 shares traded. PFE's current last sale is 85.87% of the target price of $30.5.
PG&E Corp (PCG) is -0.04 at $15.95, with 2,768,887 shares traded. As reported by Zacks, the current mean recommendation for PCG is in the "buy range".
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

After Hours Most Active for Feb 21, 2025 : T, BAC, NEE, TAC, PFE, PCG

In recent trading, shares of TransAlta Corp (Symbol: TAC) have crossed above the average analyst 12-month target price of $14.13, changing hands for $14.33/share. When a stock reaches the target an analyst has set, the analyst logically has two ways to react: downgrade on valuation, or, re-adjust their target price to a higher level. Analyst reaction may also depend on the fundamental business developments that may be responsible for driving the stock price higher — if things are looking up for the company, perhaps it is time for that target price to be raised.
There are 8 different analyst targets within the Zacks coverage universe contributing to that average for TransAlta Corp, but the average is just that — a mathematical average. There are analysts with lower targets than the average, including one looking for a price of $11.14. And then on the other side of the spectrum one analyst has a target as high as $22.30. The standard deviation is $3.837.
But the whole reason to look at the average TAC price target in the first place is to tap into a "wisdom of crowds" effort, putting together the contributions of all the individual minds who contributed to the ultimate number, as opposed to what just one particular expert believes. And so with TAC crossing above that average target price of $14.13/share, investors in TAC have been given a good signal to spend fresh time assessing the company and deciding for themselves: is $14.13 just one stop on the way to an even higher target, or has the valuation gotten stretched to the point where it is time to think about taking some chips off the table? Below is a table showing the current thinking of the analysts that cover TransAlta Corp:
The average rating presented in the last row of the above table above is from 1 to 5 where 1 is Strong Buy and 5 is Strong Sell. This article used data provided by Zacks Investment Research via Quandl.com. Get the latest Zacks research report on TAC — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

TransAlta Reaches Analyst Target Price

Looking at the universe of stocks we cover at Dividend Channel, on 8/30/24, MillerKnoll Inc (Symbol: MLKN), DuPont (Symbol: DD), and TransAlta Corp (Symbol: TAC) will all trade ex-dividend for their respective upcoming dividends. MillerKnoll Inc will pay its quarterly dividend of $0.1875 on 10/15/24, DuPont will pay its quarterly dividend of $0.38 on 9/16/24, and TransAlta Corp will pay its quarterly dividend of $0.06 on 10/1/24. As a percentage of MLKN's recent stock price of $29.73, this dividend works out to approximately 0.63%, so look for shares of MillerKnoll Inc to trade 0.63% lower — all else being equal — when MLKN shares open for trading on 8/30/24. Similarly, investors should look for DD to open 0.46% lower in price and for TAC to open 0.67% lower, all else being equal.
Below are dividend history charts for MLKN, DD, and TAC, showing historical dividends prior to the most recent ones declared.
MillerKnoll Inc (Symbol: MLKN):
DuPont (Symbol: DD):
TransAlta Corp (Symbol: TAC):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 2.52% for MillerKnoll Inc, 1.84% for DuPont, and 2.67% for TransAlta Corp.
In Wednesday trading, MillerKnoll Inc shares are currently down about 0.8%, DuPont shares are up about 1%, and TransAlta Corp shares are up about 0.8% on the day.
Click here to learn which 25 S.A.F.E. dividend stocks should be on your radar screen »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: MillerKnoll, DuPont and TransAlta

TransAlta Corporation TAC is committed to being a leader in clean electricity by delivering customer-centered power solutions. The company benefits from its focus on sustainable energy projects. Given its growth opportunities, TAC makes for a solid investment option in the utility sector.
The company currently carries a Zacks Rank #2 (Buy). Let’s look at the factors that are driving the stock.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased 4.2% in the past 30 days to 75 cents.
The consensus estimate for 2025 EPS has increased 3.7% in the past 30 days to 56 cents.
TAC delivered an average earnings surprise of 98% in the past four quarters.
Dividend & Share Buyback
TAC distributes dividends to shareholders on a regular basis. Its current dividend yield is 2.09%, which is better than the Zacks S&P 500 Composite’s average of 1.27%.
TransAlta’s management had announced an enhanced common share repurchase program for 2024 of up to $150 million for 2024. The company has already repurchased shares worth $89 million under this program.
Return on Equity
Return on equity (ROE) indicates how efficiently a company has been utilizing its funds to generate higher returns. TAC’s current ROE is 47.71%, higher than the industry’s average of 10.34%. This indicates that it has been utilizing its funds more constructively than its peers in the electric power utility industry.
Solvency
The company’s time-to-interest earned ratio at the end of the second quarter was 3.5. The ratio, being greater than one, reflects its ability to meet future interest obligations without difficulties.
Growth Strategy
The company hopes to add up to 1.75 gigawatts (GW) of additional capacity to its fleet by investing nearly $3.5 billion to develop, build or acquire new assets through the end of 2028. It is focusing on customer-centered renewables and storage through the advancement of its 5 GW development pipeline, which it plans to expand to 10 GW by 2028.
Price Performance
Shares of TAC have gained 21.7% in the past month compared with the industry’s 5.8% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other top-ranked stocks in the industry are Exelon Corporation EXC, The AES Corporation AES and NiSource Inc. NI. Each stock currently carries a Zacks Rank of 2. You can see the complete list of Zacks Rank #1 (Strong Buy) stocks here.
Exelon’s long-term (three to five years) earnings growth rate is 5.66%. It delivered an average earnings surprise of 4.5% in the last four quarters.
AES Corporation delivered an average earnings surprise of 19.2% in the last four quarters. The consensus estimate for 2024 earnings indicates year-over-year growth of 8.5%.
NiSource delivered an average earnings surprise of 20.6% in the last four quarters. The Zacks Consensus Estimate for 2024 earnings indicates year-over-year growth of 7.5%.
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This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Reasons to Add TransAlta (TAC) to Your Portfolio Right Now

OGE Energy Corporation's OGE systematic capital investments to enhance safety, reliability and resiliency are likely to strengthen its infrastructure and boost its performance. Given its growth opportunities, OGE makes for a solid investment option in the utility sector.
The company currently carries a Zacks Rank #2 (Buy). Let’s look at the factors that are driving the stock.
Growth Projections
The Zacks Consensus Estimate for OGE’s 2024 and 2025 earnings per share is pegged at $2.13 and $2.25, respectively, indicating year-over-year growth of 2.9% and 5.5%.
The consensus estimate for 2024 and 2025 sales indicates year-over-year growth of 29.5% and 3.2%, respectively.
The long-term (three to five years) earnings growth is pinned at 5%.
Dividend Yield
OGE Energy continues to reward its shareholders through dividend hikes. The company targets a dividend payout ratio of 65-70%. Its current dividend yield is 4.28%, which is better than the industry’s average yield of 3.52%.
Debt Position
OGE Energy’s debt to capital at the end of the second quarter, was 54.03%, compared with its industry average of 62.45%.
The time-to-interest earned ratio at the end of the second quarter was 2.9. The ratio, being greater than one, reflects the company’s ability to meet interest obligations without difficulties.
Investments
OGE Energy aims to invest $6 billion during 2024-2028 to upgrade its infrastructure and provide seamless services to its customers. For 2024, OG&E has allocated $1.1 billion for investment.
With these capital investments, the company aims to maintain and improve the safety, resiliency and reliability of its distribution and transmission grid and generation fleet. It also expects to enhance its system’s capability to serve its growing customer base and perform during extreme weather events.
Price Performance
Shares of OGE have gained 7.9% in the past month compared with the industry’s 5.3% growth.
Image Source: Zacks Investment Research
Other Stocks to Consider
Other top-ranked stocks in the industry are TransAlta Corporation TAC, The AES Corporation AES and NiSource Inc. NI. Each of these stocks currently carries a Zacks Rank of 2. You can see the complete list of Zacks Rank #1 (Strong Buy) stocks here.
TransAlta Corporation has delivered an average earnings surprise of 98% in the last four quarters. The Zacks Consensus Estimate for 2024 earnings has increased 4.2% in the past 30 days.
AES Corporation has delivered an average earnings surprise of 19.2% in the last four quarters. The consensus estimate for earnings for 2024 and 2025 indicates year-over-year growth of 8.5% and 8.5%, respectively.
NiSource has delivered an average earnings surprise of 20.64% in the last four quarters. The Zacks Consensus Estimate for earnings for 2024 and 2025 indicates year-over-year growth of 7.5% and 6.8%, respectively.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reasons to Add OGE Energy (OGE) to Your Portfolio Now

NiSource Inc.’s NI systematic investment plans to modernize infrastructure should further enhance the reliability of its operations. The company continues to add clean assets to its portfolio, which helps boost its overall performance. Given its growth opportunities, NiSource makes for a solid investment option in the utility sector.
Let’s focus on the factors that make this Zacks Rank #2 (Buy) company a strong investment pick at the moment.
Growth Projections & Surprise History
The Zacks Consensus Estimate for 2024 earnings per share (EPS) has increased 0.6% to $1.72 in the past 60 days.
NiSource’s long-term (three to five years) earnings growth rate is 6%. It delivered an average earnings surprise of 20.6% in the past four quarters.
Debt Position
Currently, NiSource’s total debt to capital is 57.85%, better than the industry’s average of 62.45%.
The time-to-interest earned ratio at the end of the second quarter of 2024 was 2.8. The ratio, being greater than one, reflects the company’s ability to meet future interest obligations without difficulties.
Dividend History
NiSource has been consistently paying dividends to its shareholders. Currently, NiSource’s quarterly dividend is 26.5 cents per share, resulting in an annualized dividend of $1.06, up 6% from the previous level of $1. The company expects an annual dividend payout ratio of 60-70%. Its current dividend yield is 3.38%, better than the Zacks S&P 500 composite’s 1.3%.
Systematic Investments
NiSource continues to work on a long-term utility infrastructure modernization program. The company expects investments to be in the range of $3.3-$3.5 billion for 2024. It also projects an investment of $16.4 billion during 2024-2028. NiSource anticipates an annual rate base growth of 8-10% during 2023-2028, driven by its capital expenditures.
Its planned regulated investments should improve the reliability and safety of its services and provide efficient electric and natural gas services to its increasing customer base. More than 75% of NiSource’s capital expenditure starts providing returns in less than 18 months of investment.
Price Performance
In the past three months, the stock has returned 9.3% against the industry’s decline of 0.1%.
Image Source: Zacks Investment Research
Other Stocks to Consider
A few other top-ranked stocks from the same industry are Exelon Corporation EXC, PPL Corporation PPL and TransAlta TAC, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EXC’s long-term earnings growth rate is 5.66%. The Zacks Consensus Estimate for 2024 EPS implies an improvement of 2.1% from the bottom line recorded in 2023.
PPL’s long-term earnings growth rate is 6.82%. The Zacks Consensus Estimate for 2024 EPS implies an improvement of 7.5% from the bottom line recorded in 2023.
The Zacks Consensus Estimate for TAC’s 2024 EPS improved 4.2% over the past 30 days. The company delivered an average earnings surprise of 98% in the trailing four quarters.
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Zacks Investment Research is temporarily offering an urgent Special Report naming and explaining these emerging powerhouses primed to boom. Click below for Hydrogen Energy: 3 Industrial Giants to Ride the Next Renewable Energy Wave.
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Exelon Corporation (EXC) : Free Stock Analysis Report
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NiSource, Inc (NI) : Free Stock Analysis Report
TransAlta Corporation (TAC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why You Should Add NiSource (NI) to Your Portfolio Now

FirstEnergy FE reported second-quarter 2024 operating earnings of 56 cents per share, on par with the Zacks Consensus Estimate.
The bottom line increased 19.1% from the year-ago quarter’s figure of 47 cents. The year-over-year increase in earnings reflects the company's Energize365 investment plan, including rate base growth in distribution and transmission formula rate programs, higher distribution sales and constructive regulatory outcomes in multiple jurisdictions.
On a GAAP basis, the second-quarter earnings were 8 cents, down 80.5% from 41 cents in the year-ago quarter.
Total Revenues
Operating revenues of $3.28 billion missed the Zacks Consensus Estimate of $3.47 billion by 5.58%. The top line, however, increased 9.1% from $3 billion in the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
FirstEnergy Corporation price-consensus-eps-surprise-chart | FirstEnergy Corporation Quote
Segmental Performance
Distribution Services and Retail Generation: Revenues from this segment totaled $2.62 billion, up 10.2% from the prior-year quarter’s level.
Transmission: Earnings from this segment amounted to $0.58 billion, up 6.5% from $0.52 billion reported in the prior-year quarter.
Other: Revenues from this segment amounted to $84 million compared with $113 million in the year-ago quarter.
Highlights of the Release
Total operating expenses were $2.86 billion, up 13.1% from the year-ago quarter’s level of $2.52 billion. The year-over-year increase in other operating expenses resulted in an overall increase in expenses, while the cost of fuel and purchased power was lower than the year-ago quarter.
The company reported an interest expense of $285 million, up 3.3% from the prior-year quarter’s level of $276 million.
On a weather-adjusted basis, total distribution deliveries increased 3% compared to the second quarter of 2023. Weather-adjusted usage increased 4% and 7% among its residential and commercial customers, respectively.
Financial Highlights
As of Jul 29, 2024, FE reported available liquidity of $5.80 billion, including cash and cash equivalents of $508 million.
Long-term debt and other long-term obligations as of Jun 30, 2024, totaled $20.83 billion compared with $22.89 billion as of Dec 31, 2023.
Net cash from operating activities for the first six months of 2024 totaled $1.07 billion compared with $213 million used for operating activities in the year-ago period.
Guidance
FirstEnergy reaffirmed 2024 earnings per share in the range of $2.61-$2.81. The Zacks Consensus Estimate for the same is pegged at $2.70, a tad lower than $2.71, the midpoint of the company’s guided range.
FirstEnergy reaffirmed its long-term annual operating EPS growth rate of 6-8%. FE will continue with its capital investment plan of $26 billion for the 2024-2028 period.
Zacks Rank
FirstEnergy currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Xcel Energy XEL is going to report its second-quarter results on Aug 1. It has an Earnings ESP of +6.12% and a Zacks Rank #2 at present. The company delivered an earnings surprise of 10% in the last reported quarter.
TransAlta Corporation TAC is going to report second-quarter results on Aug 1. The Zacks Consensus Estimate for second-quarter earnings per share of 5 cents has moved up 20% in the past 60 days.
The AES Corporation AES is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for second-quarter earnings per share of 36 cents has moved up 21.1% in the past 60 days.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Xcel Energy Inc. (XEL) : Free Stock Analysis Report
FirstEnergy Corporation (FE) : Free Stock Analysis Report
The AES Corporation (AES) : Free Stock Analysis Report
TransAlta Corporation (TAC) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

FirstEnergy (FE) Q2 Earnings On Par, Revenues Lag Estimates

PPL Corporation PPL is scheduled to release second-quarter 2024 results on Aug 2, before market open. The company delivered an earnings surprise of 3.9% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
PPL’s quarterly earnings are likely to have gained from increased transmission investment and ongoing savings of operation and maintenance through its centralization efforts and asset optimization.
The company’s service territories experienced warmer-than-normal temperature patterns during the quarter. This is expected to have boosted electricity demand among its customers for cooling purposes, thereby positively contributing to its top-line performance.
However, increased depreciation and higher interest expenses are expected to have offset some positives in the to-be-reported quarter.
Q2 Expectations
The Zacks Consensus Estimate for earnings is pegged at 31 cents per share, indicating a year-over-year increase of 6.9%.
The Zacks Consensus Estimate for revenues is pinned at $1.91 billion, implying a year-over-year improvement of 5%.
The Zacks Consensus Estimate for total electricity delivered in Pennsylvania is pegged at 8,249 gigawatt-hour (GWh), up 2% year over year. The consensus estimate for total electricity delivered in Kentucky is pinned at 6,619 GWh, which is nearly flat year over year.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for PPL this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
PPL Corporation Price and EPS Surprise
PPL Corporation price-eps-surprise | PPL Corporation Quote
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, PPL carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks to Consider
Investors may consider the following players from the same industry as these have the right combination of elements to post an earnings beat this reporting cycle.
Entergy Corporation ETR is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +2.42% and a Zacks Rank #3 at present.
ETR’s long-term (three to five years) earnings growth rate is 7.33%. The Zacks Consensus Estimate for second-quarter sales is pegged at $2.94 billion, which implies a year-over-year increase of 3.2%.
Xcel Energy XEL is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +3.48% and a Zacks Rank #2 at present.
XEL’s long-term earnings growth rate is 6.39%. The Zacks Consensus Estimate for sales is pegged at $3.23 billion, which implies a year-over-year increase of 6.8%.
TransAlta TAC is likely to come up with an earnings beat when it reports second-quarter results on Aug 1. It has an Earnings ESP of +20.00% and a Zacks Rank #1 at present.
The Zacks Consensus Estimate for second-quarter earnings has moved up 20% in the past seven days. It delivered an average earnings surprise of 174.7% in the past four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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