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Pinnacle West (PNW) Q3 Earnings Beat Estimates, Ups '22 View
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Pinnacle West Capital Corporation (PNW - Free Report) reported third-quarter 2022 operating earnings per share (EPS) of $2.88, which surpassed the Zacks Consensus Estimate of $2.62 by 9.9%.
However, the bottom line decreased by 6.8% from the prior-year quarter’s earnings of $3 per share. The unfavorable decision on the general rate case was the primary driver for lower quarter-over-quarter earnings.
Total Revenues
Total revenues of $1,469.9 million for the third quarter of 2022 surpassed the Zacks Consensus Estimate of $1,316 million by 11.7%. The top line also improved by 12.4% from $1,308.3 million in the prior-year quarter.
Pinnacle West Capital Corporation Price, Consensus and EPS Surprise
In the third quarter, total operating expenses were $1,052.3 million, up 19.7% from the year-ago quarter’s level, due to an increase in fuel and power purchase costs along with higher operational and maintenance expenses.
The operating income in this quarter was $417.6 million, down 2.74% from the year-ago quarter’s reading of $429.4 million.
Net interest expenses were $63.4 million, up 7.8% from the year-ago quarter’s reading of $58.8 million.
Pinnacle West recorded robust 2% year-over-year customer growth and experienced retail sales growth of 1.3% with lower income tax.
Financial Highlights
Cash and cash equivalents were $7 million as of Sep 30, 2022 compared with $10 million as of Dec 31, 2021.
The long-term debt fewer current maturities was $7,344.2 million as of Sep 30, 2022, higher than $6,913.7 million as of Dec 31, 2021.
Net cash flow provided by operating activities in the first nine months of 2022 was $1,031.9 million compared with $660.5 million in the year-ago period.
Guidance
Pinnacle West, taking into consideration the positive year-to-date impacts of beneficial weather, strong sales and customer growth, raised 2022 EPS in the range $4.20-$4.35 from $3.90-$4.10 per share. The Zacks Consensus Estimate for 2022 earnings of $4.01 per share is lower than the midpoint of the updated guided range.
The utility reiterated its investment plan of $4.7 billion in the 2022-2024 period to support customer growth, reliability and a clean transition. In total, PNW plans to invest $1.53 billion in 2022.
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating earnings per share (EPS) of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%.
The Zacks Consensus Estimate for FE’s fourth-quarter earnings per share is 53 cents, indicating growth of 3.92% from the year-ago quarter’s reported figure.
NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2022 adjusted earnings of 85 cents per share, beating the Zacks Consensus Estimate of 79 cents by 7.6%.
The Zacks Consensus Estimate for NEE’s fourth-quarter earnings per share is 56 cents, implying growth of 36.6% from the year-ago quarter’s reported number.
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2022 operating earnings of $1.18 per share, lagging the Zacks Consensus Estimate by 1.7%.
The Zacks Consensus Estimate for XEL’s fourth-quarter earnings per share is 67 cents, suggesting growth of 15.5% from the year-ago quarter’s actuals.
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Pinnacle West (PNW) Q3 Earnings Beat Estimates, Ups '22 View
Pinnacle West Capital Corporation (PNW - Free Report) reported third-quarter 2022 operating earnings per share (EPS) of $2.88, which surpassed the Zacks Consensus Estimate of $2.62 by 9.9%.
However, the bottom line decreased by 6.8% from the prior-year quarter’s earnings of $3 per share. The unfavorable decision on the general rate case was the primary driver for lower quarter-over-quarter earnings.
Total Revenues
Total revenues of $1,469.9 million for the third quarter of 2022 surpassed the Zacks Consensus Estimate of $1,316 million by 11.7%. The top line also improved by 12.4% from $1,308.3 million in the prior-year quarter.
Pinnacle West Capital Corporation Price, Consensus and EPS Surprise
Pinnacle West Capital Corporation price-consensus-eps-surprise-chart | Pinnacle West Capital Corporation Quote
Operational Highlights
In the third quarter, total operating expenses were $1,052.3 million, up 19.7% from the year-ago quarter’s level, due to an increase in fuel and power purchase costs along with higher operational and maintenance expenses.
The operating income in this quarter was $417.6 million, down 2.74% from the year-ago quarter’s reading of $429.4 million.
Net interest expenses were $63.4 million, up 7.8% from the year-ago quarter’s reading of $58.8 million.
Pinnacle West recorded robust 2% year-over-year customer growth and experienced retail sales growth of 1.3% with lower income tax.
Financial Highlights
Cash and cash equivalents were $7 million as of Sep 30, 2022 compared with $10 million as of Dec 31, 2021.
The long-term debt fewer current maturities was $7,344.2 million as of Sep 30, 2022, higher than $6,913.7 million as of Dec 31, 2021.
Net cash flow provided by operating activities in the first nine months of 2022 was $1,031.9 million compared with $660.5 million in the year-ago period.
Guidance
Pinnacle West, taking into consideration the positive year-to-date impacts of beneficial weather, strong sales and customer growth, raised 2022 EPS in the range $4.20-$4.35 from $3.90-$4.10 per share. The Zacks Consensus Estimate for 2022 earnings of $4.01 per share is lower than the midpoint of the updated guided range.
The utility reiterated its investment plan of $4.7 billion in the 2022-2024 period to support customer growth, reliability and a clean transition. In total, PNW plans to invest $1.53 billion in 2022.
Zacks Rank
Pinnacle West currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating earnings per share (EPS) of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%.
The Zacks Consensus Estimate for FE’s fourth-quarter earnings per share is 53 cents, indicating growth of 3.92% from the year-ago quarter’s reported figure.
NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2022 adjusted earnings of 85 cents per share, beating the Zacks Consensus Estimate of 79 cents by 7.6%.
The Zacks Consensus Estimate for NEE’s fourth-quarter earnings per share is 56 cents, implying growth of 36.6% from the year-ago quarter’s reported number.
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2022 operating earnings of $1.18 per share, lagging the Zacks Consensus Estimate by 1.7%.
The Zacks Consensus Estimate for XEL’s fourth-quarter earnings per share is 67 cents, suggesting growth of 15.5% from the year-ago quarter’s actuals.