PPL Corp misses second-quarter profit estimates as costs weigh
PPL Corp misses second-quarter profit estimates as costs weigh Aug 7 (Reuters) - Electric utility PPL Corp PPL.N narrowly missed second-quarter profit estimates on Friday, hurt by higher interest and operating expenses.
Rising operational expenses are increasingly impacting the financial gains utilities see from steady customer demand.
The Allentown, Pennsylvania-based utility posted an adjusted profit of 33 cents per share for the quarter ended June 30, compared to analysts' average estimates of 34 cents per share.
The company's interest expenses rose to $232 million, a 16.6% increase from the year-ago period.
Higher-for-longer interest rates can weigh on utilities as it makes investing in the construction and maintenance of critical infrastructure such as electrical grids more expensive.
Operating expenses of PPL edged up to 1.64 billion during the reported quarter, from 1.62 billion a year ago.
The company reported operating revenues of $2.11 billion, up 4.2% from the year-ago period
The company reaffirmed its full-year forecast for adjusted profit of $1.90 to $1.98 per share.
(Reporting by Pranav Mathur in Bengaluru; Editing by Shailesh Kuber)
((Pranav.Mathur@thomsonreuters.com;))