Pinnacle West Capital Earnings: Reversing to a Loss

S&P 500 (NYSE:SPY) component Pinnacle West Capital Corporation (NYSE:PNW) reported its results for the first 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 First Quarter

Results: Loss narrowed to $8.3 million (loss of 8 cents per diluted share) from $15.1 million (loss of 14 cents per share) in the same quarter a year earlier.

Revenue: Rose 4.5% to $648.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pinnacle West Capital Corporation reported an adjusted net loss of 7 cents per share. By that measure, the company fell in line with the mean analyst estimate of a loss of 7 cents per share. It fell short of the average revenue estimate of $666.3 million.

Quoting Management: “Our employees’ attention to operational efficiency and costs more than offset the effects of milder weather and slightly lower customer usage and helped produce first-quarter results that were in line with our expectations,” said Pinnacle West Chairman, President and Chief Executive Officer Don Brandt.

Key Stats:

The company met estimates last quarter after toppling them in the two previous quarters. In the fourth quarter of the last fiscal year, it topped the mark by 6 cents, and in the third quarter of the last fiscal year, it was ahead by 14 cents.

PNW’s loss in the latest quarter breaks a three-quarter string of profits. The company reported a profit of $12.6 million in the fourth quarter of the last fiscal year, a profit of $255.4 million in the third quarter of the last fiscal year and $86.7 million in the second of the last fiscal year.

Looking Forward: For the next quarter, analysts are growing pessimistic about the company’s expected results. The average estimate for the second quarter is 98 cents per share, dropping from 99 cents a month ago. For the fiscal year, the average estimate has moved down from $3.36 a share to $3.35 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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