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Company offers an impressive yield of 4.1% and has strong growth prospects. PPL aggressively working to increase regulated operations and sell unregulated assets. Company stays on track with initiatives to strengthen regulated operations. I continue to stay bullish on PPL Corp. (NYSE: PPL ); the company offers an impressive yield of 4.1%. Along with the high yield, the company has strong growth prospects. PPL Corp. has been incurring capital spending to strengthen its regulated operations, which will augur well for its future growth. Also, the company has been aggressively working to increase its regulated operations and sell its unregulated assets. The company stays on track with its initiatives to strengthen its regulated operations, which will add value for shareholders and bode well for its stock price. Moreover, as the company continues to expand its regulated operations, its earnings and cash flow stability will improve. The company reported a strong financial performance for 4Q’14. PPL registered an operating EPS of $0.58 for 4Q’14, better than the consensus of $0.53. Total revenues for 4Q’14 were $4.02 billion, up from $2.82 billion in 4Q’13. The company also provided the 2015 EPS guidance for its regulated operations of $2.05-$2.25. As the company continues to expand its regulated operations, the company increased its long-term growth target. The company provided a new multi-year EPS growth target of 4%-6% (annual growth) from 2015 through 2017, higher than its previous guidance of at least 4%. Also, the company has been taking aggressive initiatives to sell its unregulated assets and expand its regulated operational base, as I stated in my previous article. The company sold its hydro-assets for $900 million in 2014. And it is scheduled to completely spin-off its Supply segment (unregulated assets) by 2Q’15. As the company has been selling its unregulated assets, this will allow the company to direct its capital to strengthen its regulated operations. Currently, the company generates almost 85% of its earnings from regulated operations, which is expected to increase to 100%, as the company is aggressively selling its unregulated operations. The company’s impressive capital spending outlook continues to be an important growth catalyst. The company has planned to spend $18 billion from 2015 through 2019, which will drive its growth. Earnings growth in 2015 will be mainly driven by corporate restructuring efforts, and growth beyond 2015 will be backed by regulated utility capital spending. As the company has been expanding its regulated operations, it will offer cash flow stability and augur well for its stock price. PPL Corp. has been correctly expanding its regulated operations. The company is expected to complete the sale of its supply segment by 2Q’15. Increasing exposure to regulated operations will reduce the company’s business risk and provide cash flow stability. Also, the company offers an impressive yield of 4.1%. The company has also been increasing its regulated operations, which will positively affect its stock price. Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More…) The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article. Scalper1 News
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