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Pinnacle West Capital to Post Q3 Earnings: Here's What to Expect

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Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to release third-quarter 2024 results on Nov. 6, before market open. The company delivered an earnings surprise of 34.4% in the last reported quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Major Factors That Might Have Impacted PNW's Q3 Performance

Pinnacle West Capital’s top-line performance is expected to have benefited from retail customer growth and an increase in retail electricity sales. The quarterly results are likely to gain from robust commercial load growth driven by data centers.

Arizona Public Service’s (“APS”) Energy Management System is expected to continue to provide a better foundation, which might improve the future integration of renewable and energy storage assets into APS’ generation resource portfolio. This is likely to have had a positive impact on the company’s quarterly performance.

However, increased financing costs and operation and maintenance expenses must have offset some positives in the to-be-reported

Q3 Expectations

The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, indicating a year-over-year decline of 4.9%.

The Zacks Consensus Estimate for revenues is pinned at $1.68 billion, implying a year-over-year increase of 2.4%.

The Zacks Consensus Estimate for total electric sales is pinned at 11,659.21 gigawatt-hour, down 5.1% from the figure registered in the year-ago quarter.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Pinnacle West Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the case here as you will see below.  

Earnings ESP: The company’s Earnings ESP is +2.96%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
 

Zacks Rank: Currently, Pinnacle West Capital carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors may also consider the following players from the same industry as these too have the right combination of elements to post an earnings beat this reporting cycle.

Eversource Energy (ES - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov. 4. It has an Earnings ESP of +7.05% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for earnings is pinned at $1.04 per share. The Zacks Consensus Estimate for sales is pegged at $3.05 billion, which implies a year-over-year increase of 9.3%.

American Electric Power (AEP - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov. 6. It has an Earnings ESP of +0.94% and a Zacks Rank #3 at present.

AEP’s long-term (three to five years) earnings growth rate is 6.24%. The Zacks Consensus Estimate for earnings is pinned at $1.78 per share, which implies a year-over-year increase of 0.6%.

Avista (AVA - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov. 6. It has an Earnings ESP of +33.33% and a Zacks Rank #3 at present.

AVA’s long-term earnings growth rate is 4.82%. The Zacks Consensus Estimate for sales is pinned at $394.1 million, which implies a year-over-year increase of 3.8%.

 

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