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Pinnacle West (PNW) to Post Q1 Earnings: What's in Store?

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Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to release first-quarter 2021 results on May 5, before the opening bell. The company witnessed a negative earnings surprise of 525% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors at Play

With the reopening of the economy, Pinnacle West’s demand from commercial and industrial group might have improved in the to-be-reported quarter. Also, the same from the residential customers is likely to have further increased. Additionally, improving economic conditions in Arizona are expected to have driven demand in the first quarter.

Moreover, the utility’s consistent cost-management efforts and customer-base expansion might have  boosted its earnings.

Expectations

The Zacks Consensus Estimate for first-quarter sales is pegged at $685.9 million, indicating a rise of 3.62% from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for first-quarter earnings per share stands at 28 cents, suggesting a 3.70% increase from the year-earlier quarter's reported number.

What Our Quantitative Model Predicts

Our proven model doesn’t predict 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 not the case here.

Earnings ESP: Pinnacle West has an Earnings ESP of -12.50%. 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.

 

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.

American Water Works Company, Inc. (AWK - Free Report) is set to release first-quarter 2021 results on May 3. It has an Earnings ESP of +0.34% and is currently a #3 Ranked player.

CenterPoint Energy, Inc. (CNP - Free Report) is set to release first-quarter 2021 results on May 6. It has an Earnings ESP of +4.52% and a Zacks Rank of 3, presently.

Duke Energy Corporation (DUK - Free Report) is set to release first-quarter 2021 results on May 10. It has an Earnings ESP of +0.16% and is currently a #3 Ranked player.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

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