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Pinnacle West (PNW) Up 4.5% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Pinnacle West Capital Corporation (PNW - Free Report) . Shares have added about 4.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Pinnacle West Q4 Earnings Miss, Revenues Increase Y/Y
Pinnacle West reported adjusted earnings per share of $0.47 in the fourth quarter of 2016. The bottom line lagged the Zacks Consensus Estimate of $0.49 by 4.1% but increased 21.3 % year over year.
Full-year 2016 earnings of $3.94 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.
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.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been two upward revisionsfor the current quarter compared to one downward. However, in the past month, the consensus estimate has shifted downward by 15%.
Pinnacle West Capital Corporation Price and Consensus
At this time, Pinnacle West's stock has a subpar Growth Score of 'D', however its Momentum is doing a bit better with a 'C'. Following the exact same course, the stock was allocated also a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for value and momentum investors.
Outlook
While estimates have been broadly trending upward for the stock, the magnitude of these revisions indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stockin the next few months.
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Pinnacle West (PNW) Up 4.5% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Pinnacle West Capital Corporation (PNW - Free Report) . Shares have added about 4.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Pinnacle West Q4 Earnings Miss, Revenues Increase Y/Y
Pinnacle West reported adjusted earnings per share of $0.47 in the fourth quarter of 2016. The bottom line lagged the Zacks Consensus Estimate of $0.49 by 4.1% but increased 21.3 % year over year.
Full-year 2016 earnings of $3.94 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.
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.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There have been two upward revisionsfor the current quarter compared to one downward. However, in the past month, the consensus estimate has shifted downward by 15%.
Pinnacle West Capital Corporation Price and Consensus
Pinnacle West Capital Corporation Price and Consensus | Pinnacle West Capital Corporation Quote
VGM Scores
At this time, Pinnacle West's stock has a subpar Growth Score of 'D', however its Momentum is doing a bit better with a 'C'. Following the exact same course, the stock was allocated also a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the stock is suitable for value and momentum investors.
Outlook
While estimates have been broadly trending upward for the stock, the magnitude of these revisions indicates a downward shift. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stockin the next few months.