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Pinnacle West's (PNW) Earnings & Revenues Down Y/Y in Q2

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Pinnacle West Capital Corporation’s (PNW - Free Report) adjusted earnings of $1.28 per share in the second quarter of 2019 missed the Zacks Consensus Estimate of $1.43  by 10.5%. In the year-ago quarter, the company had reported adjusted earnings of $1.48. Unfavorable weather adversely impacted earnings in the second quarter.

Total Revenues

Total revenues came in at $869.5 million, which declined 10.7% on a year-over-year basis.

Operational Highlights

In second-quarter 2019, total operating expenses of $672.9 million fell 8% from $731.9 in the year-ago quarter.

Operating income fell 18.8% year over year to $196.6 million.

Interest expenses declined 5.3% to $57.5 million from $60.7 million in the year-ago quarter.

Courtesy of the improving Arizona economy, customer volumes improved 1.8% year over year in the quarter under review.

Financial Highlights

Pinnacle West had cash and cash equivalents of $1.6 million as of Jun 30, 2019 compared with $5.8 million as of Dec 31, 2018.

Net cash provided by continuing operations activities in the first six months of 2019 was $345.9 million, lower than $395.8 million in the first six months of 2018.

Guidance

The company expects 2019 consolidated earnings to be at the lower end of the range of $4.75-$4.95. The mid-point of $4.85 is higher than the current Zacks Consensus Estimate of $4.80.

Zacks Rank

Pinnacle West currently carries a Zacks Rank #4 (Sell).

Utility Releases

American Electric Power Co., Inc (AEP - Free Report)   reported second-quarter 2019 adjusted earnings per share (EPS) of $1.00, which surpassed the Zacks Consensus Estimate of 98 cents by 2%. It carries a Zacks Rank #3 (Hold).

NextEra Energy (NEE - Free Report) reported second-quarter 2019 adjusted earnings of $2.35 per share, which beat the Zacks Consensus Estimate of $2.28 by 3.1%. It carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PPL Corporation (PPL - Free Report) reported second-quarter 2019 adjusted EPS of 58 cents, which beat the Zacks Consensus Estimate of 56 cents by 3.6%. It carries a Zacks Rank #3.

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