PPL Doesn't Expect Significant Impact From Bexit, Yet

PPL Corp. said Friday the U.K.'s vote to leave the European Union--Brexit--is not expected to significantly impact its operations in the U.K. The utility company derived 31.4% of its revenue over the last 12 months from the U.K., making it the third-most exposed to the U.K. among S&P 500 components, according to FactSet. The stock tumbled 4.2% in premarket trade, while SPDR S&P 500 ETF shed 3.4%. The company affirmed its 2016 adjusted earnings-per-share outlook of $2.25 to $2.45, which surrounded the FactSet consensus of $2.35. PPL said it is 93% hedged for the remainder of 2016 budgeted earnings at an average rate of $1.54 per British pound; the pound was recently trading around $1.37. "The extent and duration of any potential decline in the value of the British pound sterling to the U.S. dollar is unknown at this time," said Chief Executive William Spence. "A long-term reduction in the value of the pound as a result of the U.K. referendum could require us to reassess our earnings growth rate."