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Why Is Pinnacle West (PNW) Up 1.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Pinnacle West (PNW - Free Report) . Shares have added about 1.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pinnacle West due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pinnacle West 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Pinnacle West has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Pinnacle West has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Pinnacle West (PNW) Up 1.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Pinnacle West (PNW - Free Report) . Shares have added about 1.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pinnacle West due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pinnacle West's Q1 Earnings & Revenues Beat Estimates
Pinnacle West 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
VGM Scores
Currently, Pinnacle West has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Pinnacle West has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.