Pinnacle West Capital Corp. (PNW - Free Report) reported adjusted earnings per share of $1.08 in the second quarter of 2016, lagging the Zacks Consensus Estimate of $1.14 by 5.3%. Reported earnings also dipped 1.8% year over year.
Total Revenue
In the quarter under review, total revenue of $915.4 million beat the Zacks Consensus Estimates of $906 million by 1%. Reported revenues were also higher than the year-ago figure of $890.6 million by 2.8%.
Above-average temperatures in June and solid customer growth aided the top line.
Operational Highlights
Total operating expenses in second-quarter 2016 rose 3.8% to $683.6 million due to higher fossil fuel plant maintenance cost.
In the reported quarter, operating income was almost flat year over year at $231.7 million.
Interest expenses increased 8% to $47.5 million from $44 million a year ago.
Financial Update
Cash & cash equivalents were $43 million as of Jun 30, 2016, up from $39.5 million as of Dec 31, 2015.
Long-term debt was $3,898 million as of Jun 30, 2016, up from $3,462.4 millionas of Dec 31, 2015.
Cash from operating activities in the first six months of 2016 stood at $422.5 million, up from $394.3 million in the prior-year period.
Guidance
For 2016, Pinnacle West Capital reiterated its earnings guidance in the range of $3.90–$4.10 per diluted share.
The company expects operating & maintenance expenditure in the range of $825–$845 millions.
Capital expenditure is projected to be $1,205 million, $1,307 million and $1,124 million for 2016, 2017 and 2018, respectively.
Other Utility Releases
CMS Energy Corp. (CMS - Free Report) reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%.
NextEra Energy, Inc.(NEE - Free Report) reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%.
FirstEnergy Corp. (FE - Free Report) announced second-quarter 2016 operating earnings of 56 cents per share, higher than both the Zacks Consensus Estimate and the prior-year figure of 53 cents by 5.7%.
Zacks Rank
Pinnacle West presently carries a Zacks Rank #3 (Hold).
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Pinnacle West Capital Corp. (PNW - Free Report) reported adjusted earnings per share of $1.08 in the second quarter of 2016, lagging the Zacks Consensus Estimate of $1.14 by 5.3%. Reported earnings also dipped 1.8% year over year.
Total Revenue
In the quarter under review, total revenue of $915.4 million beat the Zacks Consensus Estimates of $906 million by 1%. Reported revenues were also higher than the year-ago figure of $890.6 million by 2.8%.
Above-average temperatures in June and solid customer growth aided the top line.
Operational Highlights
Total operating expenses in second-quarter 2016 rose 3.8% to $683.6 million due to higher fossil fuel plant maintenance cost.
In the reported quarter, operating income was almost flat year over year at $231.7 million.
Interest expenses increased 8% to $47.5 million from $44 million a year ago.
Financial Update
Cash & cash equivalents were $43 million as of Jun 30, 2016, up from $39.5 million as of Dec 31, 2015.
Long-term debt was $3,898 million as of Jun 30, 2016, up from $3,462.4 millionas of Dec 31, 2015.
Cash from operating activities in the first six months of 2016 stood at $422.5 million, up from $394.3 million in the prior-year period.
Guidance
For 2016, Pinnacle West Capital reiterated its earnings guidance in the range of $3.90–$4.10 per diluted share.
The company expects operating & maintenance expenditure in the range of $825–$845 millions.
Capital expenditure is projected to be $1,205 million, $1,307 million and $1,124 million for 2016, 2017 and 2018, respectively.
Other Utility Releases
CMS Energy Corp. (CMS - Free Report) reported second-quarter 2016 adjusted earnings per share of 45 cents, beating the Zacks Consensus Estimate of 35 cents by 28.6%.
NextEra Energy, Inc.(NEE - Free Report) reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%.
FirstEnergy Corp. (FE - Free Report) announced second-quarter 2016 operating earnings of 56 cents per share, higher than both the Zacks Consensus Estimate and the prior-year figure of 53 cents by 5.7%.
Zacks Rank
Pinnacle West presently carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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