We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pinnacle West (PNW) Q2 Earnings & Revenues Beat Estimates
Read MoreHide Full Article
Pinnacle West Capital Corporation (PNW - Free Report) reported second-quarter 2022 operating earnings per share (EPS) of $1.45, which surpassed the Zacks Consensus Estimate of $1.30 by 11.5%.
However, the bottom line decreased by 24.1% from the prior-year quarter’s earnings of $1.91 per share. The unfavorable decision on the general rate case was the primary driver for lower quarter-over-quarter earnings.
Total Revenues
Total revenues of $1,061.7 million for the second quarter of 2022 surpassed the Zacks Consensus Estimate of $954 million by 11.3%. The top line also improved by 6.1% from $1,000.2 million in the prior-year quarter.
Pinnacle West Capital Corporation Price, Consensus and EPS Surprise
In the second quarter, total operating expenses were $838.6 million, up 16.2% from the year-ago quarter’s level, due to an increase in the fuel and power purchase cost along with higher operating and maintenance expenses.
The operating income in the second quarter was $223.1 million, down 19.9% from the year-ago quarter’s reading of $278.4 million.
Net interest expenses were $68.1 million, up 8.4% from the year-ago quarter’s reading of $62.8 million.
Pinnacle West recorded robust 2% year-over-year customer growth and experienced stronger-than-projected sales growth of 3.2%.
Financial Highlights
Cash and cash equivalents were $29.2 million as of Jun 30, 2022 compared with $10 million as of Dec 31, 2021.
The long-term debt less current maturities was $7,241.3 million as of Jun 30, 2022, higher than $6,913.7 million as of Dec 31, 2021.
Net cash flow provided by operating activities in the first six months of 2022 was $588.3 million compared with $312.4 million in the year-ago period.
Guidance
Pinnacle West reiterated 2022 EPS in the range of $3.90-$4.10. The Zacks Consensus Estimate for 2022 earnings of $3.97 per share is 0.8% lower than the midpoint of the guided range of $4.00.
The utility reiterated the investment plan of $4.7 billion in the 2022-2024 period to support customer growth, reliability and clean transition. Out of the total, PNW plans to invest $1.53 billion in 2022.
PNM Resources (PNM - Free Report) is slated to report second-quarter 2022 earnings on Aug 4 before market open. The Zacks Consensus Estimate for the second-quarter EPS is pegged at 55 cents. PNM Resources’ long-term earnings growth is currently pegged at 5%.
Alliant Energy Corp. (LNT - Free Report) is slated to report second-quarter 2022 earnings on Aug 4 after market close. The Zacks Consensus Estimate for the second-quarter EPS is pegged at 58 cents. Alliant Energy’s long-term earnings growth is currently pegged at 5.7%.
Hawaiian Electric Industries (HE - Free Report) is scheduled to announce first-quarter 2022 results on Aug 8 after market close. The Zacks Consensus Estimate for earnings is pegged at 52 cents per share. Hawaiian Electric Industries’ long-term earnings growth is projected at 3.2%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Pinnacle West (PNW) Q2 Earnings & Revenues Beat Estimates
Pinnacle West Capital Corporation (PNW - Free Report) reported second-quarter 2022 operating earnings per share (EPS) of $1.45, which surpassed the Zacks Consensus Estimate of $1.30 by 11.5%.
However, the bottom line decreased by 24.1% from the prior-year quarter’s earnings of $1.91 per share. The unfavorable decision on the general rate case was the primary driver for lower quarter-over-quarter earnings.
Total Revenues
Total revenues of $1,061.7 million for the second quarter of 2022 surpassed the Zacks Consensus Estimate of $954 million by 11.3%. The top line also improved by 6.1% from $1,000.2 million in the prior-year quarter.
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 second quarter, total operating expenses were $838.6 million, up 16.2% from the year-ago quarter’s level, due to an increase in the fuel and power purchase cost along with higher operating and maintenance expenses.
The operating income in the second quarter was $223.1 million, down 19.9% from the year-ago quarter’s reading of $278.4 million.
Net interest expenses were $68.1 million, up 8.4% from the year-ago quarter’s reading of $62.8 million.
Pinnacle West recorded robust 2% year-over-year customer growth and experienced stronger-than-projected sales growth of 3.2%.
Financial Highlights
Cash and cash equivalents were $29.2 million as of Jun 30, 2022 compared with $10 million as of Dec 31, 2021.
The long-term debt less current maturities was $7,241.3 million as of Jun 30, 2022, higher than $6,913.7 million as of Dec 31, 2021.
Net cash flow provided by operating activities in the first six months of 2022 was $588.3 million compared with $312.4 million in the year-ago period.
Guidance
Pinnacle West reiterated 2022 EPS in the range of $3.90-$4.10. The Zacks Consensus Estimate for 2022 earnings of $3.97 per share is 0.8% lower than the midpoint of the guided range of $4.00.
The utility reiterated the investment plan of $4.7 billion in the 2022-2024 period to support customer growth, reliability and clean transition. Out of the total, PNW plans to invest $1.53 billion in 2022.
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
PNM Resources (PNM - Free Report) is slated to report second-quarter 2022 earnings on Aug 4 before market open. The Zacks Consensus Estimate for the second-quarter EPS is pegged at 55 cents. PNM Resources’ long-term earnings growth is currently pegged at 5%.
Alliant Energy Corp. (LNT - Free Report) is slated to report second-quarter 2022 earnings on Aug 4 after market close. The Zacks Consensus Estimate for the second-quarter EPS is pegged at 58 cents. Alliant Energy’s long-term earnings growth is currently pegged at 5.7%.
Hawaiian Electric Industries (HE - Free Report) is scheduled to announce first-quarter 2022 results on Aug 8 after market close. The Zacks Consensus Estimate for earnings is pegged at 52 cents per share. Hawaiian Electric Industries’ long-term earnings growth is projected at 3.2%.