PPL Corporation PPL is set to report fourth-quarter 2017 results on Feb 22, before the market opens. In the third quarter, the utility company delivered a positive earnings surprise of 5.66%.

Let’s see how things are shaping up prior to the upcoming results.

Factors to Consider

PPL Corporation expects to benefit from higher transmission earnings and lower operation and maintenance expense from its Pennsylvania Regulated Segment. However, lower electricity sales volumes in Kentucky Regulated Segment are expected to offset the gains.

PPL Corporation is likely to recover nearly 70% of the investment within six months of investment, paving the way for growth and future investments. The company will benefit from the rate hike approved in July 2017.

Earnings Whispers

Our proven model does not show that PPL is likely to beat estimates this quarter as it does not possess the key components. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below.

Zacks ESP: PPL Corporation has an Earnings ESP of -0.69%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PPL Corporation has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s rank combined with a negative ESP makes positive surprise quite unlikely this season.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing a negative estimate revisions' momentum.

PPL Corporation Price and EPS Surprise

PPL Corporation Price and EPS Surprise | PPL Corporation Quote

Stocks to Consider

Here are some companies from the industry that you may want to consider, as our model shows that these have the right combination of elements to beat on earnings this quarter:

Public Service Enterprise Group Incorporated. PEG has an Earnings ESP of +1.92%. It carries a Zacks Rank #3 and is expected to report fourth-quarter 2017 results on Feb 23.

You can see the complete list of today’s Zacks #1 Rank stocks here.

NiSource Inc. NI has an Earnings ESP of +1.45% and a Zacks Rank #3. The company is expected to release fourth-quarter 2017 results on Feb 20.

Pinnacle West Capital Corporation PNW has an Earnings ESP of +12.20%. It carries a Zacks Rank #3 and is expected to report fourth-quarter 2017 results on Feb 23.

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