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Pinnacle West (PNW) Q3 Earnings & Revenues Surpass Estimates

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Pinnacle West Capital Corporation (PNW - Free Report) reported third-quarter 2023 operating earnings of $3.50 per share, which surpassed the Zacks Consensus Estimate of $3.33 by 5.1%. In the year-ago quarter, the company reported earnings of $2.88 per share.

Total Revenues

Sales for the quarter totaled $1,637.8 million, which surpassed the Zacks Consensus Estimate of $1,541 million by 6.3%. The top line also increased 5.7% from $1,469.9 million reported in the prior-year quarter.

 

Operational Highlights

Total operating expenses were $1,121.5 million, up 6.6% from the year-ago quarter’s level. This was due to an increase in fuel and power purchase costs, along with higher depreciation and amortization expenses.

Total operational and maintenance expenses were $250 million, down 0.7% year over year.

Operating income totaled $516.3 million, up 23.6% from $417.6 million recorded in the year-ago quarter.

Total interest expenses were $87.8 million, up 38.3% from $63.5 million registered in the prior-year period.

Financial Highlights

Cash and cash equivalents totaled $15.1 million as of Sep 30, 2023, compared with $4.8 million as of Dec 31, 2022.

Long-term debt less current maturities amounted to $8,164.4 million as of Sep 30, 2023, higher than $7,741.3 million recorded as of Dec 31, 2022.

Net cash flow provided by operating activities in the first nine months of 2023 totaled $833.9 million compared with $1,031.9 million a year ago.

Guidance

PNW reaffirmed its 2023 consolidated earnings projection to the range of $4.10-$4.30 per share. The Zacks Consensus Estimate for the same is pegged at $4.24 per share, higher than the mid-point of the company’s guided range.

The company expects 2023 adjusted operating and maintenance expenses in the range of $915-$935 million.

Zacks Rank

Pinnacle West currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Dominion Energy (D - Free Report) is slated to report third-quarter results on Nov 3, before market open. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share.

D’s long-term (three to five years) earnings growth rate is 4%. It delivered an average earnings surprise of 4.3% in the last four quarters.

TransAlta (TAC - Free Report) is scheduled to report third-quarter results on Nov 7, before market open. The Zacks Consensus Estimate for earnings is pinned at 32 cents per share.

The consensus mark for 2023 EPS is pinned at $1.44, implying a year-over-year improvement of 1,900%. It delivered an average earnings surprise of 107.1% in the last four quarters.

Ameren Corporation (AEE - Free Report) is slated to report third-quarter results on Nov 8, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.80 per share, indicating a year-over-year increase of 3.5%.

AEE’s long-term earnings growth rate is 6.61%. It delivered an average earnings surprise of 8.9% in the last four quarters.

 

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