Back to top

Image: Bigstock

Pinnacle West (PNW) to Post Q3 Earnings: What's in Store?

Read MoreHide Full Article

Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to release third-quarter 2020 results on Oct 30, before the opening bell. The company delivered an earnings surprise of 15.54% in the last reported quarter.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

Pinnacle West's strategic capital expenditure plans along with its focus on enhancing its renewable capacity are expected to have boosted its performance in the third quarter. Also, its cost-management initiatives and efforts to support its customers during the pandemic are likely to have aided its earnings. The steady improvement in retail customer base and a positive economic environment in Arizona are likely to have contributed to earnings. However, payment flexibility might have hurt the utility's cash balance.

With pandemic-related restrictions beginning to ease, demand from commercial and industrial group is expected to have improved. This along with increased residential demand is likely to have driven the company’s upcoming results.

Q3 Expectations

The Zacks Consensus Estimate for third-quarter sales is pegged at $1.26 billion, which indicates a rise of 6.21% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for third-quarter earnings per share stands at $3.05, which suggests a 10.11% hike from the year-earlier quarter's reported number.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Pinnacle West this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: Pinnacle West has an Earnings ESP of +0.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Pinnacle West carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can look at some other players worth considering from the same sector, which according to our model, also have the right combination of elements to beat on earnings this reporting cycle.

Edison International (EIX - Free Report) is set to release third-quarter 2020 results on Oct 27. It has an Earnings ESP of +3.45% and a Zacks Rank of 3, currently.

CMS Energy (CMS - Free Report) is set to release third-quarter 2020 results on Oct 29. It has an Earnings ESP of +0.15% and is Zacks #3 Ranked, presently.

Southern Company (SO - Free Report) is set to release third-quarter 2020 results on Oct 29. It has an Earnings ESP of +0.54% and is a #3 Ranked player at present.

More Stock News: This Is Bigger than the iPhone!           

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.

Click here for the 6 trades >>

Published in