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Pinnacle West (PNW) Q3 Earnings Beat Estimates, Revenues Up

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Pinnacle West Capital Corporation (PNW - Free Report) reported adjusted earnings per share of $2.80 in the third quarter of 2018, beating the Zacks Consensus Estimate of $2.75 by 1.8%. In the year-ago quarter, the company had reported adjusted earnings of $2.46. The quarterly earnings were driven by the second hottest September on record in Arizona lead to increase in retail sales.

Total Revenues

In the quarter under review, total revenues of $1,268 million improved 7.2% on a year-over-year basis.

Operational Highlights

In third-quarter 2018, total Operating Expenses were $834.7 million, up 15.3% than the year-ago quarter.

Operating income declined 5.7% year over year to $433.3 million.

Interest expenses rose to $61.6 million from $55.6 million in the year-ago quarter.

Financial Condition

Pinnacle West Capital had cash and cash equivalents of $65 million as of Sep 30, 2018, up from $13.9 million as of Dec 31, 2017.

Long-term debt as of Sep 30, 2018 was $4,487.4 million, down from $4,789.7 million as of Dec 31, 2017.

Net cash flow from operating activities was $959.7 million in the first nine months of 2018 higher than $771.9 million in the prior year comparable period.

Guidance

Pinnacle West reaffirmed 2018 earnings guidance in the range of $4.35-$4.55 per share. The company expects 2019 earnings guidance in the range of $4.75-$4.95 per share.

Zacks Rank

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

Utility Releases

NextEra Energy (NEE - Free Report) reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%.

DTE Energy Company (DTE - Free Report) reported third-quarter 2018 operating earnings per share of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.

FirstEnergy Corporation (FE - Free Report) reported third-quarter 2018 operating earnings of 80 cents per share, beating the Zacks Consensus Estimate of 73 cents by 9.59%.

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