Back to top

Image: Bigstock

What's in Store for Pinnacle West (PNW) in Q3 Earnings?

Read MoreHide Full Article

Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to release third-quarter 2022 results on Nov 3, before market open. Pinnacle West Capital delivered an earnings surprise of 11.5% in the last reported quarter.

Let’s see how things have shaped up before the upcoming earnings announcement.

Factors to Consider

The ongoing economic development in Arizona and an expanding retail customer base are likely to have boosted demand and earnings in the third quarter. The continuous effort to rein in operating and maintenance expenses and higher transmission revenues is expected to have boosted third-quarter earnings.

Third-quarter earnings might’ve also gained from sales growth of new large manufacturing facilities and several large data centers developed in its service territories.

Expectations

The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.62, indicating a 12.7% decline from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for third-quarter 2022 revenues is pegged at $1.32 billion, indicating a 0.6% increase from the year-ago quarter’s reported figure.

What Our Quantitative Model Predicts

Our proven model does conclusively predict an earnings beat for Pinnacle West Capital this time. 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 the case here as you will see below.

Earnings ESP: Pinnacle West Capital has an Earnings ESP of +1.66%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, PNW carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same industry who have the right combination of elements to beat earnings in this reporting cycle.

Ameren Corporation (AEE - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov 3. AEE has an Earnings ESP of +1.41% and a Zacks Rank #3 at present.

Ameren’s long-term (three to five-year) earnings growth is currently pegged at 7.2%. The Zacks Consensus Estimate for AEE’s 2022 and 2023 EPS indicates 6.2% and 7% year-over-year growth, respectively.

The AES Corporation (AES - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov 3. AES has an Earnings ESP of +3.42% and a Zacks Rank #3 at present.

AES Corp.’s long-term earnings growth is currently pegged at 8.2%. The Zacks Consensus Estimate for AES’ 2022 and 2023 EPS indicates 5.9% and 10% year-over-year growth, respectively.

Brookfield Renewable Partners (BEP - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov 4. BEP has an Earnings ESP of +28.57% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for BEP’s 2022 and 2023 earnings per unit indicates 62.3% and 132.9% year-over-year growth, respectively.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in