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Pinnacle West (PNW) Q4 Earnings & Revenues Beat Estimates

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Pinnacle West Capital Corporation (PNW - Free Report) reported fourth-quarter 2021 operating earnings per share (EPS) of 24 cents, which surpassed the Zacks Consensus Estimate of 7 cents by 242.9%.

The bottom line also improved 101.4% from the prior-year quarter’s earnings loss of 17 cents per share. The improvement in quarterly earnings was due to an increase in revenues, driven by the higher customer usage and growth.

Pinnacle West reported operating EPS of $5.47 in 2021, down 12.3% from $4.87 in 2020. Total earnings surpassed the Zacks Consensus Estimate of $5.29 per share by 3.4%.

Total Revenues

Total revenues of $798.9 million for the fourth quarter of 2021 surpassed the Zacks Consensus Estimate of $701 million by 14%. The top line also improved by 7.8% from $741 million in the prior-year quarter.

Pinnacle West reported total revenues of $3,803.8 million in 2021, up 6.04% from $3,587 million in 2020. Total revenues also beat the Zacks Consensus Estimate of $3,710 million by 2.5%.

Pinnacle West Capital Corporation Price, Consensus and EPS Surprise

Pinnacle West Capital Corporation Price, Consensus and EPS Surprise

Pinnacle West Capital Corporation price-consensus-eps-surprise-chart | Pinnacle West Capital Corporation Quote

Operational Highlights

In the fourth quarter, total operating expenses were $748.8 million, up 5.5% from the year-ago quarter’s level, due to an increase in the fuel and power purchase cost.

Operating income in the fourth quarter was $50 million, up 62.3% from the year-ago quarter’s reading of $30.8 million.

Net interest expenses were $59.9 million, up 1.5% from the year-ago quarter’s reading of $59 million.

Pinnacle West recorded 2.2% year-over-year customer growth in 2021.

Financial Highlights

Cash and cash equivalents were $10 million as of Dec 31, 2021 compared with $60 million as of Dec 31, 2020.

Long-term debt less current maturities was $6,913.7 million as of Dec 31, 2021, higher than $6,314.3 million as of Dec 31, 2020.

Net cash flow provided by operating activities in 2021 was $860 million compared with $966.4 million in 2020.

Guidance

Pinnacle West expects 2022 EPS in the range of $3.90-$4.10. The Zacks Consensus Estimate for 2022 earnings of $3.90 per share is lower than $4, which is the midpoint of the guided range.

Pinnacle West reiterated the retail customer growth in the range of 1.5-2.5% through 2024. The utility plans to invest $4.7 billion during the 2022-2024 period to support the customer growth, reliability and clean transition.

It expects the rate base to grow annually at nearly 5-6% through 2024 from 2020 levels.

Zacks Rank

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

Upcoming Releases

Algonquin Power & Utilities (AQN - Free Report) is slated to report fourth-quarter 2021 earnings on Mar 3 after market close. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at 21 cents.

Algonquin Power & Utilities’ long-term (three to five years) earnings growth is currently pegged at 8.7%. The Zacks Consensus Estimate for AQN’s 2022 earnings implies year-over-year growth of 4.5%.

Pampa Energia (PAM - Free Report) is slated to report fourth-quarter 2021 earnings on Mar 10 after market close. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at 82 cents.

Pampa Energia’s long-term earnings growth is currently pegged at 52.4%. The Zacks Consensus Estimate for PAM’s 2021 earnings implies year-over-year growth of 126.64%.

Global Water Resources Inc. (GWRS - Free Report) is slated to report fourth-quarter 2021 earnings on Mar 10 before market open. The Zacks Consensus Estimate for the fourth quarter’s EPS is pegged at 1 cent.

Global Water Resources’ long-term earnings growth is currently pegged at 15%. The Zacks Consensus Estimate for GWRS’ 2022 earnings implies year-over-year growth of 6.7%.