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Pinnacle West's (PNW) Q1 Earnings & Revenues Beat Estimates

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Pinnacle West Capital Corporation (PNW - Free Report) posts earnings of 32 cents per share for the first quarter of 2021, outperforming the Zacks Consensus Estimate of 25 cents by 28%. Also, the bottom line improved 18.5% from the prior-year quarter’s earnings of 27 cents per share owing to favorable weather and higher transmission revenues.

Total Revenues

In the quarter under review, total revenues of $696.5 million improved 5.2% on a year-over-year basis. Also, the top line beat the Zacks Consensus Estimate of $686 million by 1.5%.

Operational Highlights

In the first quarter, total operating expenses were $648.9 million, up 4.4% from the year-ago quarter.

Operating income improved 17.6% year over year to $47.5 million.

Interest expenses were $56.9 million, up 3.2% year over year.

The company recorded 2.1% year-over-year customer growth in first-quarter 2021.

Financial Highlights

Cash and cash equivalents were $17.2 million as of Mar 31, 2021 compared with $60 million on Dec 31, 2020.

Total long-term debt was $6,465 million as of Mar 31, 2021, higher than $6,314.3 million at 2020 end.

Net cash flow provided by operating activities in the first three months of 2021 was $202 million compared with $183.6 million in the comparable period of 2020. For the reported quarter, capital expenditure of the company was $363.8 million compared with $340 million in the prior-year quarter.

Guidance

During the 2021-2023 forecast period, the utility expects retail customer growth in the 1.5-2.5% range. The utility plans to invest $4,500 million during the same time period.

Moreover, it expects rate base to grow annually at nearly 6% in the long term.

Zacks Rank

Pinnacle West Capital currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.15, which missed the Zacks Consensus Estimate of $1.23 by 6.5%.

NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2021 adjusted earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 11.7%.

FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2021 operating earnings of 69 cents per share, which beat the Zacks Consensus Estimate of 68 cents by 1.5%.

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