Q: Everytime PPL issues a press release the stock drops ! Was the guidance and business update that bad ? Why not just not do the release, and let the stock do its thing.
5i Research Answer:
2026 EBITDA estimates are $4.3B, and guidance in yesterday's update was $4.12B to $4.2B. So the guidance was 'within range' of estimates but in these cases investors tend to 'assume' the lower case scenario. It is true that companies have no obligation to issue guidance, but most tend to prefer not to 'surprise' investors, which could result in even more volatile stock movements.