Pinnacle West Capital Corporation (PNW - Free Report) reported third-quarter 2023 operating earnings of $3.50 per share, which surpassed the Zacks Consensus Estimate of $3.33 by 5.1%. In the year-ago quarter, the company reported earnings of $2.88 per share.
Total Revenues
Sales for the quarter totaled $1,637.8 million, which surpassed the Zacks Consensus Estimate of $1,541 million by 6.3%. The top line also increased 5.7% from $1,469.9 million reported in the prior-year quarter.
Operational Highlights
Total operating expenses were $1,121.5 million, up 6.6% from the year-ago quarter’s level. This was due to an increase in fuel and power purchase costs, along with higher depreciation and amortization expenses.
Total operational and maintenance expenses were $250 million, down 0.7% year over year.
Operating income totaled $516.3 million, up 23.6% from $417.6 million recorded in the year-ago quarter.
Total interest expenses were $87.8 million, up 38.3% from $63.5 million registered in the prior-year period.
Financial Highlights
Cash and cash equivalents totaled $15.1 million as of Sep 30, 2023, compared with $4.8 million as of Dec 31, 2022.
Long-term debt less current maturities amounted to $8,164.4 million as of Sep 30, 2023, higher than $7,741.3 million recorded as of Dec 31, 2022.
Net cash flow provided by operating activities in the first nine months of 2023 totaled $833.9 million compared with $1,031.9 million a year ago.
Guidance
PNW reaffirmed its 2023 consolidated earnings projection to the range of $4.10-$4.30 per share. The Zacks Consensus Estimate for the same is pegged at $4.24 per share, higher than the mid-point of the company’s guided range.
The company expects 2023 adjusted operating and maintenance expenses in the range of $915-$935 million.
Zacks Rank
Pinnacle West currently has a Zacks Rank #3 (Hold). 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 third-quarter results on Nov 3, before market open. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share.
D’s long-term (three to five years) earnings growth rate is 4%. It delivered an average earnings surprise of 4.3% in the last four quarters.
TransAlta (TAC - Free Report) is scheduled to report third-quarter results on Nov 7, before market open. The Zacks Consensus Estimate for earnings is pinned at 32 cents per share.
The consensus mark for 2023 EPS is pinned at $1.44, implying a year-over-year improvement of 1,900%. It delivered an average earnings surprise of 107.1% in the last four quarters.
Ameren Corporation (AEE - Free Report) is slated to report third-quarter results on Nov 8, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.80 per share, indicating a year-over-year increase of 3.5%.
AEE’s long-term earnings growth rate is 6.61%. It delivered an average earnings surprise of 8.9% in the last four quarters.
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Pinnacle West Capital Corporation (PNW - Free Report) reported third-quarter 2023 operating earnings of $3.50 per share, which surpassed the Zacks Consensus Estimate of $3.33 by 5.1%. In the year-ago quarter, the company reported earnings of $2.88 per share.
Total Revenues
Sales for the quarter totaled $1,637.8 million, which surpassed the Zacks Consensus Estimate of $1,541 million by 6.3%. The top line also increased 5.7% from $1,469.9 million reported in the prior-year quarter.
Operational Highlights
Total operating expenses were $1,121.5 million, up 6.6% from the year-ago quarter’s level. This was due to an increase in fuel and power purchase costs, along with higher depreciation and amortization expenses.
Total operational and maintenance expenses were $250 million, down 0.7% year over year.
Operating income totaled $516.3 million, up 23.6% from $417.6 million recorded in the year-ago quarter.
Total interest expenses were $87.8 million, up 38.3% from $63.5 million registered in the prior-year period.
Financial Highlights
Cash and cash equivalents totaled $15.1 million as of Sep 30, 2023, compared with $4.8 million as of Dec 31, 2022.
Long-term debt less current maturities amounted to $8,164.4 million as of Sep 30, 2023, higher than $7,741.3 million recorded as of Dec 31, 2022.
Net cash flow provided by operating activities in the first nine months of 2023 totaled $833.9 million compared with $1,031.9 million a year ago.
Guidance
PNW reaffirmed its 2023 consolidated earnings projection to the range of $4.10-$4.30 per share. The Zacks Consensus Estimate for the same is pegged at $4.24 per share, higher than the mid-point of the company’s guided range.
The company expects 2023 adjusted operating and maintenance expenses in the range of $915-$935 million.
Zacks Rank
Pinnacle West currently has a Zacks Rank #3 (Hold). 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 third-quarter results on Nov 3, before market open. The Zacks Consensus Estimate for earnings is pegged at 78 cents per share.
D’s long-term (three to five years) earnings growth rate is 4%. It delivered an average earnings surprise of 4.3% in the last four quarters.
TransAlta (TAC - Free Report) is scheduled to report third-quarter results on Nov 7, before market open. The Zacks Consensus Estimate for earnings is pinned at 32 cents per share.
The consensus mark for 2023 EPS is pinned at $1.44, implying a year-over-year improvement of 1,900%. It delivered an average earnings surprise of 107.1% in the last four quarters.
Ameren Corporation (AEE - Free Report) is slated to report third-quarter results on Nov 8, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.80 per share, indicating a year-over-year increase of 3.5%.
AEE’s long-term earnings growth rate is 6.61%. It delivered an average earnings surprise of 8.9% in the last four quarters.
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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