What's in Store for Pinnacle West Capital (PNW) in Q3 Earnings?
Pinnacle West Capital Corporation PNW is scheduled to release third-quarter 2023 results on Nov 2, before market open. The company delivered a negative earnings surprise of 21% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
Pinnacle West Capital’s third-quarter revenues are expected to have benefited from increased retail customer count and electricity sales growth, owing to strong growth in Arizona. The top line is also likely to have gained from increased contribution from Transmission.
In July 2023, Arizona recorded extreme heat that helped the company reach a new level of its service demand at nearly 8,200 megawatts. This is likely to have boosted PNW’s quarterly performance.
However, higher operations and maintenance expenses, interest expenses, and increased depreciation and amortization might have offset some positives in the to-be-reported quarter.
Q3 Expectations
The Zacks Consensus Estimate for earnings is pegged at $3.33 per share, indicating a year-over-year increase of 15.6%.
The consensus estimate for revenues is pinned at $1.53 billion, implying a year-over-year improvement of 4%.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Pinnacle West Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
Pinnacle West Capital Corporation Price and EPS Surprise
Pinnacle West Capital Corporation price-eps-surprise | Pinnacle West Capital Corporation Quote
Earnings ESP: The company’s Earnings ESP is -0.80%.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Pinnacle West Capital carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks to Consider
Investors may consider the following players from the same industry that have the right combination of elements to come up with an earnings beat this reporting cycle.
WEC Energy Group WEC is likely to report an earnings beat when it announces third-quarter results on Oct 31, before market open. It has an Earnings ESP of +0.55% and a Zacks Rank #3 at present.
WEC’s long-term (three to five years) earnings growth rate is 5.76%. The Zacks Consensus Estimate for earnings is pegged at 91 cents per share.
NiSource Inc. NI is expected to come up with an earnings beat when it reports third-quarter results on Nov 1, before market open. It has an Earnings ESP of +18.52% and a Zacks Rank #2 at present.
NI’s long-term earnings growth rate is 7%. The Zacks Consensus Estimate for earnings is pegged at 14 cents per share, indicating a year-over-year increase of 40%.
TransAlta TAC is likely to come up with an earnings beat when it reports third-quarter results on Nov 7, before market open. It has an Earnings ESP of +15.26% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 88.2%. The consensus mark for 2023 earnings is pinned at $1.44 per share, implying a year-over-year improvement of 1,900%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NiSource, Inc (NI) : Free Stock Analysis Report
WEC Energy Group, Inc. (WEC) : Free Stock Analysis Report
Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
TransAlta Corporation (TAC) : Free Stock Analysis Report
