Back to top

Image: Bigstock

Pinnacle West (PNW) Q2 Earnings Beat Estimates, Revenues Up

Read MoreHide Full Article

Pinnacle West Capital Corporation (PNW - Free Report) reported adjusted earnings per share of $1.48 in the second quarter of 2018, beating the Zacks Consensus Estimate of $1.44 by 2.8%. In the year-ago quarter, the company had reported adjusted earnings of $1.49. The effects of federal corporate tax cuts positively impacted earnings by 10 cents per share.

Total Revenues

In the quarter under review, total revenues of $974.1 million improved 3.1% on a year-over-year basis.

Operational Highlights

In second-quarter 2018, higher operations and maintenance expenses adversely impacted earnings by 23 cents per share. Operations and maintenance expenses increased due to higher planned fossil plant outages and other operating costs. Adverse weather conditions affected earnings by 8 cents.

Operating income declined 18.5% year over year to $242.2 million.

Interest expenses rose 8.8% to $54.4 million from $50 million in the year-ago quarter.

Pinnacle West Capital Corporation Price, Consensus and EPS Surprise

Financial Condition

Pinnacle West Capital had cash and cash equivalents of $3.8 million as of Jun 30, 2018, up from $13.9 million as of Dec 31, 2017.

Long-term debt as of Jun 30, 2018 was $4,191.5 million, down from $4,789.7 million as of Dec 31, 2017.

Net cash flow from operating activities was $395.8 million in the first half of 2018 higher than $290.5 million in the prior year comparable period.

Guidance

Pinnacle West reaffirmed 2018 earnings guidance in the range of $4.35-$4.55 per share.

Zacks Rank

Pinnacle West currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Utility Releases

DTE Energy (DTE - Free Report) reported second-quarter 2018 operating EPS of $1.36, which outpaced the Zacks Consensus Estimate of $1.11 by 22.5%.

American Electric Power (AEP - Free Report) reported second-quarter 2018 adjusted EPS of $1.01, beating the Zacks Consensus Estimate of 88 cents by 14.8%.

NextEra Energy (NEE - Free Report) reported second-quarter 2018 adjusted earnings of $2.11, beating the Zacks Consensus Estimate of $2.07 by 1.93%

Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Published in