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Pinnacle West (PNW) Q1 Earnings & Revenues Beat Estimates

·3 min read

Pinnacle West Capital Corporation PNW reported first-quarter 2022 operating earnings per share (EPS) of 15 cents, which surpassed the Zacks Consensus Estimate of 5 cents by 200%.

However, the bottom line decreased by 53.1% from the prior-year quarter’s earnings of 32 cents per share. The unfavorable decision on the general rate case was the primary driver for lower quarter-over-quarter earnings results.

Total Revenues

Total revenues of $783.5 million for the first quarter of 2022 surpassed the Zacks Consensus Estimate of $716 million by 9.4%. The top line also improved by 12.5% from $696.5 million in the prior-year quarter.

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 first quarter, total operating expenses were $729 million, up 12.3% from the year-ago quarter’s level due to an increase in the fuel and power purchase cost.

The operating income in the first quarter was $54.5 million, up 14.7% from the year-ago quarter’s reading of $47.5 million.

Net interest expenses were $65.4 million, up 5.7% from the year-ago quarter’s reading of $61.9 million.

Pinnacle West recorded robust 2.2% year-over-year customer growth and experienced stronger-than-projected sales growth of 4.4%.

Financial Highlights

Cash and cash equivalents were $14 million as of Mar 31, 2022 compared with $10 million as of Dec 31, 2021.

The long-term debt less current maturities was $7,226.6 million as of Mar 31, 2022, higher than $6,913.7 million as of Dec 31, 2021.

Net cash flow provided by the operating activities in the first three months of 2022 was $340.6 million compared with $202 million in the year-ago quarter.

Guidance

Pinnacle West reiterated 2022 EPS in the range of $3.90-$4.10. The Zacks Consensus Estimate for 2022 earnings of $4 per share is on par with the midpoint of the guided range.

The utility plans to invest $4.7 billion inthe 2022-2024 period to support customer growth, reliability and clean transition. Out of the total, PNW plans to invest $1.53 billion in 2022.

Pinnacle West reiterated the expectation of rate base growth at nearly 5-6% annually through 2024 from the 2020 levels.

Zacks Rank

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

Upcoming Releases

Dominion Energy D is scheduled to announce first-quarter 2022 results on May 5 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.19 per share.

Dominion’s long-term earnings growth is projected at 6.1%. The Zacks Consensus Estimate for D’s 2022 EPS suggests year-over-year growth of 6.7%.

Duke Energy DUK is set to release first-quarter 2022 results on May 9 before market open. The Zacks Consensus Estimate for EPS is pegged at $1.37.

Duke Energy’s long-term earnings growth is projected at 6.2%. The Zacks Consensus Estimate for DUK’s 2022 EPS indicates year-over-year growth of 4.2%.

Algonquin Power & Utilities AQN is set to release first-quarter 2022 results on May 12 after market close. The Zacks Consensus Estimate for EPS is pegged at 23 cents.

Algonquin Power & Utilities’ long-term (three to five years) earnings growth is projected at 8.1%. The Zacks Consensus Estimate for AQN’s 2022 EPS indicates year-over-year growth of 5.6%.


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