PPL Corporation’s (PPL) earnings of $0.62 per share in the second quarter of 2010 came in below the Zacks Consensus Estimate, impacted by weak performances at the Pennsylvania Delivery and International Delivery businesses.

Going forward, we are apprehensive about the company given management’s lowered 2010 earnings guidance, due to the recent dilution in the company’s shares outstanding. Additionally, expectations for continued pressure on PPL’s hedges and projections for higher coal transportation costs could weigh on future earnings, in our view.

This has led us to lower our estimates for 2010 and 2011 and also downgrade our recommendation on the stock to Underperform.
PPL CORP (PPL): Free Stock Analysis Report
Zacks Investment Research