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What Awaits Pinnacle West Capital (PNW) in Q4 Earnings?

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Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to release fourth-quarter 2022 financial results on Feb 27, before market open. The company had delivered an earnings surprise of 9.92% in the third quarter.

Let’s discuss the factors that are likely to reflected in the upcoming quarterly results.

Factors to Consider

Pinnacle West Capital’s fourth-quarter earnings are likely to have gained from increased electricity sales volume and expanding customer volume that boost demand. The improving economic condition in Arizona and demand from new manufacturing facilities in the region aid the company.

Higher interest expenses and planned outage of the Palo Verde Nuclear station during the quarter are likely to have offset some of the positives.

Expectations

The Zacks Consensus Estimate for the fourth quarter is pegged at an adjusted loss of 18 cents per share, indicating a year-over-year decline of 175%.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $841.12 million, implying a year-over-year increase of 5.3%.

What the Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Pinnacle West Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is -14.55%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Pinnacle West Capital carries a Zacks Rank #3. 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 sector that have the right combination of elements to post an earnings beat for the to-be-reported quarter.

DTE Energy (DTE - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 23, before market open. It has an Earnings ESP of +1.24% and a Zacks Rank #3, at present.

DTE’s long-term (three to five years) earnings growth is pegged at 6%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) is pegged at $6.23, implying a year-over-year increase of 3.75%.

Edison International (EIX - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 23, after market close. It has an Earnings ESP of +0.25% and a Zacks Rank #3, at present.

EIX’s long-term earnings growth is pegged at 2.97%. The Zacks Consensus Estimate for 2023 EPS is pegged at $4.76, implying a year-over-year increase of 4.12%.

Sempra Energy (SRE - Free Report) is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 28, before market open. It has an Earnings ESP of +1.01% and a Zacks Rank #3, at present.

SRE’s long-term earnings growth is pegged at 5.71%. The Zacks Consensus Estimate for 2023 EPS is pegged at $8.96, implying a year-over-year increase of 0.7%.

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

 

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