Pinnacle West Capital Corporation ( PNW Quick Quote PNW - Free Report) reported fourth-quarter 2022 operating loss of 21 cents per share, wider than the Zacks Consensus Estimate of a loss of 18 cents by 16.7%. The bottom line decreased 187.5% from the prior-year quarter’s figure of 24 cents per share. The unfavorable decision on the general rate case was the primary driver for lower quarter-over-quarter earnings. For full-year 2022, PNW reported earnings of $4.26 per share, down 22.1% from $5.47 in 2021. Total Revenues
Total revenues for the fourth quarter of 2022 were $1,009.3 million, which surpassed the Zacks Consensus Estimate of $841 million by 20%. The top line also increased 26.3% from $799 million in the prior-year quarter.
Total revenues for 2022 came in at $4,324.4 million, up 13.7% from $3,803.8 million in 2021. Operational Highlights
Total operating expenses were $972.6 million in the fourth quarter, up 29.9% from the year-ago quarter’s level. This was due to an increase in fuel and power purchase costs along with higher operational and maintenance expenses.
The operating income in the quarter was $36.8 million, down 26.4% from the year-ago quarter’s $50 million. Net interest expense was $68.9 million, up 15% from the year-ago quarter’s $59.9 million. Financial Highlights
Cash and cash equivalents were $4.8 million as of Dec 31, 2022, compared with $10 million as of Dec 31, 2021.
The long-term debt fewer current maturities was $7,741.3 million as of Dec 31, 2022, higher than $6,913.7 million as of Dec 31, 2021. Net cash flow provided by operating activities for 2022 was $1,241.4 million compared with $860 million in 2021. Guidance
Pinnacle West’s 2023 expectation takes into consideration the positive impact of normal weather and strong sales growth of 3.5-5.5%.
PNW expects 2023 earnings per share (EPS) in the range of $3.95-$4.15, assuming 113.6 million shares outstanding. The Zacks Consensus Estimate for 2023 earnings of $4.12 per share is higher than the midpoint of the guided range. Zacks Rank
Pinnacle West currently has a Zacks Rank #3 (Hold). You can see
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