What's in Store for Pinnacle West Capital (PNW) in Q2 Earnings?
Pinnacle West Capital Corporation PNW is scheduled to release second-quarter 2023 results on Aug 3, before market open. The company delivered a negative earnings surprise of 200% 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 revenues are expected to have witnessed higher contributions from its service region and Arizona, owing to their solid growth. The company’s earnings are likely to have been boosted by increased residential customer growth and sales volume.
However, rising operations and maintenance cost and interest expense might have offset some positives.
Q2 Expectations
The Zacks Consensus Estimate for earnings is pegged at $1.19 per share, indicating a year-over-year decrease of 17.9%.
The consensus estimate for revenues is pinned at $1.03 billion, implying a year-over-year decline of 2.8%.
Our model predicts total interest expenses of $64.9 million, up 4.3% from the year-ago quarter’s reported figure.
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 -4.40%.
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 #2. 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.
Public Service Enterprise Group Inc. PEG is expected to come up with an earnings beat when it reports second-quarter results on Aug 1, before market open. It has an Earnings ESP of +0.66% and a Zacks Rank #2 at present.
PEG’s long-term (three to five years) earnings growth rate is 4.85%. It delivered an average earnings surprise of 4.33% in the last four quarters.
TransAlta TAC is likely to come up with an earnings beat when it reports second-quarter results on Aug 4, before market open. It has an Earnings ESP of +217.65% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for earnings is pegged at 6 cents per share, indicating a year-over-year increase of 125%. The consensus mark for 2023 earnings is pinned at $1.03 per share, implying a year-over-year improvement of 1,387.5%.
ALLETE ALE is likely to report an earnings beat when it announces second-quarter results on Aug 8, before market open. It has an Earnings ESP of +2.56% and a Zacks Rank #3 at present.
ALE’s long-term earnings growth rate is 8.1%. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share, indicating a year-over-year increase of 16.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
TransAlta Corporation (TAC) : Free Stock Analysis Report
Allete, Inc. (ALE) : Free Stock Analysis Report
