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) Q4 Earnings Miss, Revenues Increase Y/Y
Read MoreHide Full Article
Pinnacle West Capital (PNW - Free Report) reported adjusted earnings per share of 47 cents in the fourth quarter of 2016. The bottom line lagged the Zacks Consensus Estimate of 49 cents by 4.1% but increased 21.3 % year over year.
Full-year 2016 earnings of $3.95 per share were 0.5% lower than the Zacks Consensus Estimate of $3.97. However, earnings exceeded the 2015 figure by 0.8%. The full-year earnings were within the projected earnings range of $3.90–$4.10 per share.
The year-over-year increase in earnings were driven by lower interest expenses, improved income from the company’s AZ Sun program and higher retail electricity earnings as the customer base expanded 1.4% year over year.
Total Revenue
In the quarter under review, total revenue of $739.2 million surpassed the year-ago figure of $734.4 million by 0.6%.
Revenues were $3.5 billion in 2016, up 0.3% year over year. The company continues to benefit from the improving economic conditions in Arizona.
Pinnacle West Capital Corporation Price, Consensus and EPS Surprise
Strong performance by Pinnacle West Capital’s Palo Verde Nuclear Generating Station boosted the overall results of the company. This nuclear plant produced 32.3 million megawatt-hours of carbon-free electricity in 2016.
Total operating expense in fourth-quarter 2016 decreased 1.3% to $616.4 million, primarily due to lower operation and maintenance expenses.
In the reported quarter, operating income increased 11.8% year over year to $122.9 million.
Interest expenses were up 3.9% to $50.8 million from $48.9 million a year ago.
Financial Update
Long-term debt was $4,021.8 million as of Dec 31, 2016 as against $3,462.4 million as of Dec 31, 2015.
Cash from operating activities in 2016 was $1,023 million compared with $1,094 million in the prior-year period.
Guidance
Pinnacle West Capital expects its retail energy customer base to expand 2–3% during 2017–2019.
Capital expenditure is projected to be $1,337 million, $1,124 million and $994 million for 2017, 2018 and 2019, respectively.
Peer Releases
IDACORP, Inc.’s (IDA - Free Report) fourth-quarter operating earnings of 66 cents per share beat the Zacks Consensus Estimate of 61 cents by 8.2%. The stock has a Zacks Rank #3 (Hold)
American Electric Power Co., Inc. (AEP - Free Report) , another Zacks Rank #3 stock, reported fourth-quarter operating earnings of 67 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents by 21.8%.
WEC Energy Group (WEC - Free Report) , a Zacks Rank #3 stock, reported fourth-quarter adjusted earnings of 61 cents per share, a penny lower than both the Zacks Consensus Estimate and the year-ago figure.
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Pinnacle West (PNW) Q4 Earnings Miss, Revenues Increase Y/Y
Pinnacle West Capital (PNW - Free Report) reported adjusted earnings per share of 47 cents in the fourth quarter of 2016. The bottom line lagged the Zacks Consensus Estimate of 49 cents by 4.1% but increased 21.3 % year over year.
Full-year 2016 earnings of $3.95 per share were 0.5% lower than the Zacks Consensus Estimate of $3.97. However, earnings exceeded the 2015 figure by 0.8%. The full-year earnings were within the projected earnings range of $3.90–$4.10 per share.
The year-over-year increase in earnings were driven by lower interest expenses, improved income from the company’s AZ Sun program and higher retail electricity earnings as the customer base expanded 1.4% year over year.
Total Revenue
In the quarter under review, total revenue of $739.2 million surpassed the year-ago figure of $734.4 million by 0.6%.
Revenues were $3.5 billion in 2016, up 0.3% year over year. The company continues to benefit from the improving economic conditions in Arizona.
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
Strong performance by Pinnacle West Capital’s Palo Verde Nuclear Generating Station boosted the overall results of the company. This nuclear plant produced 32.3 million megawatt-hours of carbon-free electricity in 2016.
Total operating expense in fourth-quarter 2016 decreased 1.3% to $616.4 million, primarily due to lower operation and maintenance expenses.
In the reported quarter, operating income increased 11.8% year over year to $122.9 million.
Interest expenses were up 3.9% to $50.8 million from $48.9 million a year ago.
Financial Update
Long-term debt was $4,021.8 million as of Dec 31, 2016 as against $3,462.4 million as of Dec 31, 2015.
Cash from operating activities in 2016 was $1,023 million compared with $1,094 million in the prior-year period.
Guidance
Pinnacle West Capital expects its retail energy customer base to expand 2–3% during 2017–2019.
Capital expenditure is projected to be $1,337 million, $1,124 million and $994 million for 2017, 2018 and 2019, respectively.
Peer Releases
IDACORP, Inc.’s (IDA - Free Report) fourth-quarter operating earnings of 66 cents per share beat the Zacks Consensus Estimate of 61 cents by 8.2%. The stock has a Zacks Rank #3 (Hold)
American Electric Power Co., Inc. (AEP - Free Report) , another Zacks Rank #3 stock, reported fourth-quarter operating earnings of 67 cents per share, which surpassed the Zacks Consensus Estimate of 55 cents by 21.8%.
WEC Energy Group (WEC - Free Report) , a Zacks Rank #3 stock, reported fourth-quarter adjusted earnings of 61 cents per share, a penny lower than both the Zacks Consensus Estimate and the year-ago figure.
Zacks Rank
Pinnacle West Capital currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>