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Pinnacle West (PNW) to Post Q2 Earnings: What's in Store?

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Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to release second-quarter 2021 results on Aug 5, before the opening bell. The company delivered an earnings surprise of 28% in the last reported quarter.

Let’s discuss the factors that are likely to reflect on the upcoming quarterly results.

Factors at Play

With the rollout of vaccines and reopening of the economy, Pinnacle West’s demand from the commercial and industrial group is likely to have improved in the June quarter. Stable residential demand is likely to have boosted earnings in the same period.

Improving economic conditions in Arizona, a fast-growing service territory and cost-containment efforts are expected to have driven the company’s earnings.

Expectations

The Zacks Consensus Estimate for second-quarter sales is pegged at $922 million, indicating a 0.82% dip from the year-ago quarter’s reported figure. The Zacks Consensus Estimate for second-quarter earnings per share stands at $1.58, suggesting a 7.60% decrease from the year-earlier quarter's reported number.

What Our Quantitative Model Predicts

Our proven model doesn’t conclusively 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 0.00%. 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

Here are some companies worth considering from the same industry, which according to our model, have the right combination of elements to beat on earnings in the upcoming releases.

Portland General Electric Company (POR - Free Report) is set to release second-quarter 2021 results on Jul 30. It has an Earnings ESP of +7.04% and a Zacks Rank of 3, presently.

Duke Energy (DUK - Free Report) is set to release second-quarter 2021 results on Aug 5. It has an Earnings ESP of +0.15% and is currently Zacks #3 Ranked.

NRG Energy, Inc. (NRG - Free Report) is set to release second-quarter 2021 results on Aug 5. It has an Earnings ESP of +32.84% and is presently Zacks #3 Ranked.