Phoenix, AZ-based Pinnacle West Capital Corporation (PNW Quick QuotePNW - Free Report) , together with its subsidiaries, provides electricity services in the state of Arizona.

Pinnacle West’s continuous investment in traditional generation, transmission & distribution lines will boost its performance over the long run.

The gradual recovery in Arizona’s economy, decline in unemployment rates and increasing housing permits will boost demand going forward. However, stringent regulations and fluctuations in commodity price remain the concern.

Estimate Trend & Surprise History

Investors should note that the second quarter Zacks Consensus Estimate for earnings of $1.14 per share has decreased by 5.8% over the last 30 days.

Coming to the earnings surprise, Pinnacle West has surpassed the Zacks Consensus Estimate in one out of the last four quarters, resulting in a negative average surprise of 10.83%.

Zacks Rank: Currently, Pinnacle West has a Zacks Rank #3 (Hold) but that could change following its second quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: Pinnacle West’s second-quarter earnings lagged expectation. While our consensus called for an EPS of $1.14, the company reported EPS of $1.08.

Revenue: Pinnacle West topped the revenue estimates in the second quarter. The company posted revenues of $915.4 million in the first quarter, compared to our consensus estimate of $906 million.

Key Stat: In the quarter under review, total customer growth was 1.4% quarter-over-quarter.

Stock Price: It would be interesting to see how the market reacts to the negative earnings surprise during the trading session today.

Check back later for our full write up on this PNW earnings report later!

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 >>