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Pinnacle West (PNW) Up 0.8% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Pinnacle West (PNW - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pinnacle West due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pinnacle West Beats on Q3 Earnings, Ups 2020 EPS View
Pinnacle West Capital Corporation’s adjusted earnings per share of $3.07 in the third quarter of 2020 beat the Zacks Consensus Estimate of $2.98 by 3%.
The bottom line also improved 10.8% from the year-ago quarter’s figure. The result reflects the favorable impact of hotter-than-normal weather, which boosted demand.
Total Revenues
In the quarter under review, total revenues of $1.25 billion improved 5.4% on a year-over-year basis. However, the top line missed the Zacks Consensus Estimate of $1.26 billion by 0.8%.
Operational Highlights
In the third quarter, total operating expenses were $799.5 million, down 1.5% from the year-ago quarter.
Operating income improved 12.8% year over year to $455 million.
Interest expenses were $56.8 million, up 5.3% year over year.
Financial Highlights
Cash and cash equivalents worth $181.9 million as of Sep 30, 2020 were up from $10.3 million on Dec 31, 2019.
Total long-term debt was $6,316.4 million as of Sep 30, 2020, higher than $4,832.6 million at 2019 end.
Net cash flow provided by operating activities for the first nine months of 2020 was $772 million compared with $834.8 million in the comparable year-ago period. For the first nine months of 2020, capital expenditure of the company was $971.1 million compared with $857.9 million in the corresponding quarter of last year.
Guidance
Management lifted 2020 EPS to the range $4.95-$5.15 from the previous outlook of $4.75-$4.95. The upper end is the current Zacks Consensus Estimate.
The company expects annual retail customer growth of 1.5-2.5% over 2020-2022 time period.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -85.71% due to these changes.
VGM Scores
At this time, Pinnacle West has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Pinnacle West has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Pinnacle West (PNW) Up 0.8% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Pinnacle West (PNW - Free Report) . Shares have added about 0.8% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pinnacle West due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pinnacle West Beats on Q3 Earnings, Ups 2020 EPS View
Pinnacle West Capital Corporation’s adjusted earnings per share of $3.07 in the third quarter of 2020 beat the Zacks Consensus Estimate of $2.98 by 3%.
The bottom line also improved 10.8% from the year-ago quarter’s figure. The result reflects the favorable impact of hotter-than-normal weather, which boosted demand.
Total Revenues
In the quarter under review, total revenues of $1.25 billion improved 5.4% on a year-over-year basis. However, the top line missed the Zacks Consensus Estimate of $1.26 billion by 0.8%.
Operational Highlights
In the third quarter, total operating expenses were $799.5 million, down 1.5% from the year-ago quarter.
Operating income improved 12.8% year over year to $455 million.
Interest expenses were $56.8 million, up 5.3% year over year.
Financial Highlights
Cash and cash equivalents worth $181.9 million as of Sep 30, 2020 were up from $10.3 million on Dec 31, 2019.
Total long-term debt was $6,316.4 million as of Sep 30, 2020, higher than $4,832.6 million at 2019 end.
Net cash flow provided by operating activities for the first nine months of 2020 was $772 million compared with $834.8 million in the comparable year-ago period. For the first nine months of 2020, capital expenditure of the company was $971.1 million compared with $857.9 million in the corresponding quarter of last year.
Guidance
Management lifted 2020 EPS to the range $4.95-$5.15 from the previous outlook of $4.75-$4.95. The upper end is the current Zacks Consensus Estimate.
The company expects annual retail customer growth of 1.5-2.5% over 2020-2022 time period.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -85.71% due to these changes.
VGM Scores
At this time, Pinnacle West has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Pinnacle West has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.