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Pinnacle West (PNW) Q4 Earnings Lag Estimates, Revenues Beat
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Pinnacle West Capital Corporation (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.
Pinnacle West Capital Corporation Price, Consensus and EPS Surprise
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.
Duke Energy Corporation (DUK - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.11 per share, beating the Zacks Consensus Estimate of $1.06 by 4.7%.
The Zacks Consensus Estimate for DUK’s 2023 EPS is $5.63, implying an increase of 6.83% year over year. It delivered an average earnings surprise of 0.66% in the last four quarters.
NRG Energy, Inc. (NRG - Free Report) reported fourth-quarter 2022 earnings of $1.64 per share, beating the Zacks Consensus Estimate of $1.43 by 14.7%.
The Zacks Consensus Estimate for NRG’s 2023 EPS is $4.73, implying a 50.53% increase year over year. Its current dividend yield is 4.49%, better than the Zacks S&P 500 Composite’s yield of 1.59%.
PPL Corporation (PPL - Free Report) reported fourth-quarter 2022 adjusted earnings of 28 cents per share, on par with the Zacks Consensus Estimate.
The Zacks Consensus Estimate for PPL’s 2023 EPS is $1.6, implying a 13.5% increase year over year. It delivered an average earnings surprise of 1.5% in the last four quarters.
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Pinnacle West (PNW) Q4 Earnings Lag Estimates, Revenues Beat
Pinnacle West Capital Corporation (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.
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
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 the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
Duke Energy Corporation (DUK - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.11 per share, beating the Zacks Consensus Estimate of $1.06 by 4.7%.
The Zacks Consensus Estimate for DUK’s 2023 EPS is $5.63, implying an increase of 6.83% year over year. It delivered an average earnings surprise of 0.66% in the last four quarters.
NRG Energy, Inc. (NRG - Free Report) reported fourth-quarter 2022 earnings of $1.64 per share, beating the Zacks Consensus Estimate of $1.43 by 14.7%.
The Zacks Consensus Estimate for NRG’s 2023 EPS is $4.73, implying a 50.53% increase year over year. Its current dividend yield is 4.49%, better than the Zacks S&P 500 Composite’s yield of 1.59%.
PPL Corporation (PPL - Free Report) reported fourth-quarter 2022 adjusted earnings of 28 cents per share, on par with the Zacks Consensus Estimate.
The Zacks Consensus Estimate for PPL’s 2023 EPS is $1.6, implying a 13.5% increase year over year. It delivered an average earnings surprise of 1.5% in the last four quarters.