Pinnacle West 3Q profit up, reiterates forecasts

Pinnacle West Capital 3rd-quarter profit rises; company backs 2009 and 2010 profit forecasts

• On 2:45 pm EDT, Thursday October 29, 2009

PHOENIX (AP) -- Electricity provider Pinnacle West Capital Corp. said Thursday its third-quarter profit rose on higher sales, lower commodity prices and warmer weather in the three-month period that included July, the hottest month ever recorded in Arizona.

It also reaffirmed its profit predictions for 2009 and 2010.

The regional provider, based in Phoenix, earned $186.7 million, or $1.84 per share, in the quarter that ended Sept. 30. That is up from the $151.6 million, or $1.50 per share, it earned a year earlier.

Adjusted profit of $1.96 beat a $1.75 per share consensus profit estimate of analysts polled by Thomson Reuters.

Revenue rose 7 percent to $1.14 billion from $1.07 billion. Analysts had expected $1.07 billion.

Pinnacle West said warmer weather boosted its third-quarter earnings by 5 cents a share. It said the average temperature, which includes morning lows and afternoon highs, in Arizona for July was 98.4 degrees. The previous record was 97.6 degrees, set in July 2003.

The company also reiterated that it would earn about $2.30 per share in 2009 and $3 per share in 2010. Analysts expect $2.30 in 2009 and $2.91 in 2010.

Pinnacle's shares fell 64 cents, or 2 percent, to $31.93 in afternoon trading.