We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pinnacle West (PNW) Rides on CAPEX & Clean Energy Goals
Read MoreHide Full Article
Pinnacle West Capital Corporation’s (PNW - Free Report) planned investments in strengthening its infrastructure and an increasing focus on renewable sources for power generation will help it take advantage of the expected demand surge for clean energy. Also, the company’s efforts to reduce costs will drive its earnings.
The Zacks Consensus Estimate for 2021 earnings is pegged at $4.96 per share, indicating growth of 1.85% from the year-ago reported figure. Also, the consensus mark for current-year revenues stands at $3.66 billion, suggesting 1.92% growth from the prior-year reported number. Additionally, long-term (three-five years) earnings growth of the company is pegged at 5%.
Pinnacle West’s investments in clean power generation, and transmission and distribution lines will help it expand its customer base with better efficiency. After investing $1,262 million in 2020, it spent $681.1 million in the first six months of 2021, up 0.6% from the level registered in the prior-year comparable period. Also, the utility has plans to spend $1,500 million, annually, through the 2021-2023 forecast period. Moreover, it is working to reduce costs, which will help keep the customer rates low as well as enhance its customer benefits and shareholder value.
Apart from growing its utility infrastructure, Pinnacle West continues focusing on expanding its generation from renewable sources. In the 2021-2023 time frame, the company will invest $1,112 million in increasing clean power generation. It also aims to deliver 100% carbon-free electricity to its customers by 2050. This includes a near-term target of attaining a resource mix within 2030 comprising 65% clean energy and 45% of renewable sources.
Some other players from the same industry are also making efforts to supply clean energy to their customers and enrich the reliability of their services. Companies like Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Xcel Energy (XEL - Free Report) intend to provide absolute clean energy by 2050.
Headwinds
Pinnacle West’s progress could be hindered by fluctuations in commodity prices, stringent environmental regulations and unplanned outages in nuclear-generation facilities.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Pinnacle West (PNW) Rides on CAPEX & Clean Energy Goals
Pinnacle West Capital Corporation’s (PNW - Free Report) planned investments in strengthening its infrastructure and an increasing focus on renewable sources for power generation will help it take advantage of the expected demand surge for clean energy. Also, the company’s efforts to reduce costs will drive its earnings.
The Zacks Consensus Estimate for 2021 earnings is pegged at $4.96 per share, indicating growth of 1.85% from the year-ago reported figure. Also, the consensus mark for current-year revenues stands at $3.66 billion, suggesting 1.92% growth from the prior-year reported number. Additionally, long-term (three-five years) earnings growth of the company is pegged at 5%.
The stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. In the past three months, shares of the company have lost 9.4% against the industry’s rise of 2.6%.
Three Months Price Performance
Image Source: Zacks Investment Research
Tailwinds
Pinnacle West’s investments in clean power generation, and transmission and distribution lines will help it expand its customer base with better efficiency. After investing $1,262 million in 2020, it spent $681.1 million in the first six months of 2021, up 0.6% from the level registered in the prior-year comparable period. Also, the utility has plans to spend $1,500 million, annually, through the 2021-2023 forecast period. Moreover, it is working to reduce costs, which will help keep the customer rates low as well as enhance its customer benefits and shareholder value.
Apart from growing its utility infrastructure, Pinnacle West continues focusing on expanding its generation from renewable sources. In the 2021-2023 time frame, the company will invest $1,112 million in increasing clean power generation. It also aims to deliver 100% carbon-free electricity to its customers by 2050. This includes a near-term target of attaining a resource mix within 2030 comprising 65% clean energy and 45% of renewable sources.
Some other players from the same industry are also making efforts to supply clean energy to their customers and enrich the reliability of their services. Companies like Duke Energy (DUK - Free Report) , DTE Energy (DTE - Free Report) and Xcel Energy (XEL - Free Report) intend to provide absolute clean energy by 2050.
Headwinds
Pinnacle West’s progress could be hindered by fluctuations in commodity prices, stringent environmental regulations and unplanned outages in nuclear-generation facilities.