Most power companies beat analyst expectations in Q4'21; PPL falls short

Among the largest power companies in the U.S. and Canada, PPL Corp. missed analyst expectations by the widest margin in the fourth quarter of 2021, according to S&P Global Market Intelligence data.

PPL reported fourth-quarter 2021 operating earnings of 22 cents per share, missing the S&P Capital IQ consensus normalized EPS estimate of 32 cents by 31.3%.

Along with its quarterly results, PPL announced that it was cutting its dividend, a move questioned by analysts and investors ahead of its acquisition of Rhode Island utility Narragansett Electric Co. from National Grid PLC.

But the close of the merger has since been delayed, after the Massachusetts Supreme Judicial Court ordered a stay on the July 2021 order of the state Department of Public Utilities waiving its jurisdiction. Rhode Island's attorney general is also appealing the decision to state utility regulators to approve the merger.

Despite PPL's performance, most of the largest power companies surpassed analyst expectations for the fourth quarter of 2021.

Consolidated Edison Inc. beat the consensus estimate by 16.3%. The company posted adjusted earnings of $1.00 per share, compared with the normalized earnings estimate of 86 cents per share.

The New York-based utility's adjusted earnings excluded the impact of impairment losses related to its investment in Mountain Valley Pipeline LLC.

Consolidated Edison and PPL recorded positive price changes of 18.1% and 6.6%, respectively, for the 12-month period ended Dec. 31, 2021. The S&P 500 Utilities logged a 14% positive price change for the year.

S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.