Pinnacle West Capital Corp Earnings Cheat Sheet: Increase in Profit Year Over Year

S&P 500 (NYSE:SPY) component Pinnacle West Capital Corporation (NYSE:PNW) reported net income above Wall Street’s expectations for the third quarter. Pinnacle West Capital, through its subsidiaries, provides retail and wholesale electric services.

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Pinnacle West Capital Earnings Cheat Sheet for the Third Quarter

Results: Net income for Pinnacle West Capital Corporation rose to $255.4 million ($2.32 per share) vs. $233.9 million ($2.14 per share) in the same quarter a year earlier. This marks a rise of 9.2% from the year earlier quarter.

Revenue: Remained flat at $1.12 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PNW reported adjusted earnings of $2.24 per share, beating the mean analyst estimate of $2.10 per share. Analysts were expecting revenue of $1.13 billion.

Quoting Management: “Driven largely by record-setting temperatures, our third-quarter results substantially offset the effects of extremely mild weather in the second quarter. Additionally, the Company effectively controlled costs, and our power plants operated well throughout the summer,” said Pinnacle West Chairman, President and Chief Executive Officer Don Brandt. “These factors set our expectations for full-year earnings near the top of our guidance range.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 78 cents versus a mean estimate of net income of 88 cents per share.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 2.5% to $799.8 million from the year earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 7 cents per share, down from 11 cents ninety days ago. The average estimate for the fiscal year is $2.83 per share, down from $3.06 ninety days ago.

Competitors to Watch: UniSource Energy Corp. (NYSE:UNS), IDACORP, Inc. (NYSE:IDA), PNM Resources, Inc. (NYSE:PNM), NV Energy, Inc. (NYSE:NVE), Edison International (NYSE:EIX), The Southern Company (NYSE:SO), Cleco Corporation (NYSE:CNL), Hawaiian Electric Industries, Inc. (NYSE:HE), Portland General Electric Co. (NYSE:POR), and Northeast Utilities System (NYSE:NU).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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