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Pinnacle West's (PNW) Q1 Earnings Miss Estimates, Improve Y/Y

Zacks Equity Research

Pinnacle West Capital Corporation’s PNW adjusted earnings of 16 cents per share in the first quarter of 2019 missed the Zacks Consensus Estimate of 18 cents by 11.1%. In the year-ago quarter, the company had reported adjusted earnings of 3 cents. The year-over-year improvement can be attributed to colder-than-normal weather that led to increase in retail sales.

Total Revenues

Total revenues came in at $740.5 million, which improved 7% on a year-over-year basis.

Pinnacle West Capital Corporation Price, Consensus and EPS Surprise

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

Operational Highlights

In first-quarter 2019, total operating expenses of $680.4 million increased 2.8% from the year-ago quarter’s tally.

Operating income increased 91.7% year over year to $60 million.

Interest expenses rose 3.4% to $53.9 million from $52.2 million in the year-ago quarter.

Courtesy of the improving Arizona economy, customer volumes improved 1.9% year over year in the quarter under review.

Weather-normalized electricity sales increased 1% in the first quarter compared with 2018’s first quarter.

Guidance

Management reaffirmed its 2019 EPS view in the range of $4.75-$4.95. The mid-point of $4.85 is in line with the current Zacks Consensus Estimate.

Zacks Rank

Pinnacle West currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

DTE Energy Company DTE delivered first-quarter 2019 operating earnings of $2.05 per share, which outpaced the Zacks Consensus Estimate of $1.95 by 5.1%.

NextEra Energy, Inc’s  NEE first-quarter 2019 adjusted earnings came in at $2.20 per share surpassing the Zacks Consensus Estimate of $2.01 by 9.4%.

FirstEnergy Corporation FE reported first-quarter 2019 operating earnings of 67 cents per share, which exceeded the Zacks Consensus Estimate of 66 cents by 1.52%.

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