Pinnacle West Capital Corporation (PNW - Free Report) reported second-quarter 2023 operating earnings of 94 cents per share, which missed the Zacks Consensus Estimate of $1.19 by 21%. In the year-ago quarter, the company reported earnings of $1.45 per share.
Total Revenues
Sales for the quarter totaled $1,121.7 million, which surpassed the Zacks Consensus Estimate of $1,032 million by 8.7%. The top line also increased 5.7% from $1,061.7 million in the prior-year quarter.
Operational Highlights
Total operating expenses amounted to $938.4 million, up 11.9% from the year-ago quarter’s level. This was due to an increase in fuel and power purchase costs, along with higher operational and maintenance expenses.
Total operational and maintenance expenses were $277.2 million, up 13% year over year.
Operating income totaled $183.3 million, down 17.8% from $223.1 million in the year-ago quarter.
Net interest expenses were $81.5 million, up 30.8% from $62.3 million in the prior-year period.
Financial Highlights
Cash and cash equivalents totaled $7.7 million as of Jun 30, 2023, compared with $4.8 million as of Dec 31, 2022.
Long-term debt less current maturities amounted to $8,164.3 million as of Jun 30, 2023, higher than $7,741.3 million as of Dec 31, 2022.
Net cash flow provided by operating activities in the first six months of 2023 was $437.6 million compared with $588.3 million a year ago.
Guidance
PNW raised its 2023 consolidated earnings guidance to the range of $4.10-$4.30 per share on a weather-normalized basis from the previously projected band of $3.95-$4.15 per share. The Zacks Consensus Estimate for the same is $4.13 per share, lower than the mid-point of the company’s guided range.
PNW expects 2023 adjusted operating and maintenance expenses in the range of $915-$935 million.
Zacks Rank
Pinnacle West currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Dominion Energy (D - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 48 cents per share.
D’s long-term (three to five years) earnings growth rate is 20%. It delivered an average earnings surprise of 1.7% in the last four quarters.
PPL Corporation (PPL - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 6.7%.
PPL’s long-term earnings growth rate is 7.42%. It delivered an average earnings surprise of 3.14% in the last four quarters.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 EPS is pinned at $5.61, implying a year-over-year improvement of 6.5%.
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Pinnacle West Capital Corporation (PNW - Free Report) reported second-quarter 2023 operating earnings of 94 cents per share, which missed the Zacks Consensus Estimate of $1.19 by 21%. In the year-ago quarter, the company reported earnings of $1.45 per share.
Total Revenues
Sales for the quarter totaled $1,121.7 million, which surpassed the Zacks Consensus Estimate of $1,032 million by 8.7%. The top line also increased 5.7% from $1,061.7 million in the prior-year quarter.
Operational Highlights
Total operating expenses amounted to $938.4 million, up 11.9% from the year-ago quarter’s level. This was due to an increase in fuel and power purchase costs, along with higher operational and maintenance expenses.
Total operational and maintenance expenses were $277.2 million, up 13% year over year.
Operating income totaled $183.3 million, down 17.8% from $223.1 million in the year-ago quarter.
Net interest expenses were $81.5 million, up 30.8% from $62.3 million in the prior-year period.
Financial Highlights
Cash and cash equivalents totaled $7.7 million as of Jun 30, 2023, compared with $4.8 million as of Dec 31, 2022.
Long-term debt less current maturities amounted to $8,164.3 million as of Jun 30, 2023, higher than $7,741.3 million as of Dec 31, 2022.
Net cash flow provided by operating activities in the first six months of 2023 was $437.6 million compared with $588.3 million a year ago.
Guidance
PNW raised its 2023 consolidated earnings guidance to the range of $4.10-$4.30 per share on a weather-normalized basis from the previously projected band of $3.95-$4.15 per share. The Zacks Consensus Estimate for the same is $4.13 per share, lower than the mid-point of the company’s guided range.
PNW expects 2023 adjusted operating and maintenance expenses in the range of $915-$935 million.
Zacks Rank
Pinnacle West currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Dominion Energy (D - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 48 cents per share.
D’s long-term (three to five years) earnings growth rate is 20%. It delivered an average earnings surprise of 1.7% in the last four quarters.
PPL Corporation (PPL - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 6.7%.
PPL’s long-term earnings growth rate is 7.42%. It delivered an average earnings surprise of 3.14% in the last four quarters.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 EPS is pinned at $5.61, implying a year-over-year improvement of 6.5%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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