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Pinnacle West (PNW) Beats on Q3 Earnings, Ups 2020 EPS View

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Zacks Equity Research
·3 min read
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Pinnacle West Capital Corporation’s PNW adjusted earnings per share of $3.07 in the third quarter of 2020 beat the Zacks Consensus Estimate of $2.98 by 3%.

The bottom line also improved 10.8% from the year-ago quarter’s figure. The result reflects the favorable impact of hotter-than-normal weather, which boosted demand.

Total Revenues

In the quarter under review, total revenues of $1.25 billion improved 5.4% on a year-over-year basis. However, the top line missed the Zacks Consensus Estimate of $1.26 billion by 0.8%.

Pinnacle West Capital Corporation Price, Consensus and EPS Surprise

Pinnacle West Capital Corporation Price, Consensus and EPS Surprise
Pinnacle West Capital Corporation Price, Consensus and EPS Surprise

Pinnacle West Capital Corporation price-consensus-eps-surprise-chart | Pinnacle West Capital Corporation Quote

Operational Highlights

In the third quarter, total operating expenses were $799.5 million, down 1.5% from the year-ago quarter.

Operating income improved 12.8% year over year to $455 million.

Interest expenses were $56.8 million, up 5.3% year over year.

Financial Highlights

Cash and cash equivalents worth $181.9 million as of Sep 30, 2020 were up from $10.3 million on Dec 31, 2019.

Total long-term debt was $6,316.4 million as of Sep 30, 2020, higher than $4,832.6 million at 2019 end.

Net cash flow provided by operating activities for the first nine months of 2020 was $772 million compared with $834.8 million in the comparable year-ago period. For the first nine months of 2020, capital expenditure of the company was $971.1 million compared with $857.9 million in the corresponding quarter of last year.

Guidance

Management lifted 2020 EPS to the range $4.95-$5.15 from the previous outlook of $4.75-$4.95. The upper end is the current Zacks Consensus Estimate.

The company expects annual retail customer growth of 1.5-2.5% over 2020-2022 time period.

Zacks Rank

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

Other Releases

CMS Energy Corporation CMS reported third-quarter 2020 adjusted earnings per share of 77 cents, which surpassed the Zacks Consensus Estimate of 68 cents by 13.2%.  

Xcel Energy Inc. XEL posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%.

NextEra Energy, Inc. NEE reported third-quarter 2020 adjusted earnings of $2.66 per share, which beat the Zacks Consensus Estimate of $2.65 by 0.4%.

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CMS Energy Corporation (CMS) : Free Stock Analysis Report
 
Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
 
Xcel Energy Inc. (XEL) : Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
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