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Pinnacle West (PNW) Misses on Q2 Earnings, Raises '23 EPS View
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Pinnacle West Capital Corporation (PNW - Free Report) reported second-quarter 2023 operating earnings of 94 cents per share, which missed the Zacks Consensus Estimate of $1.19 by 21%. In the year-ago quarter, the company reported earnings of $1.45 per share.
Total Revenues
Sales for the quarter totaled $1,121.7 million, which surpassed the Zacks Consensus Estimate of $1,032 million by 8.7%. The top line also increased 5.7% from $1,061.7 million in the prior-year quarter.
Pinnacle West Capital Corporation Price, Consensus and EPS Surprise
Total operating expenses amounted to $938.4 million, up 11.9% 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.
Total operational and maintenance expenses were $277.2 million, up 13% year over year.
Operating income totaled $183.3 million, down 17.8% from $223.1 million in the year-ago quarter.
Net interest expenses were $81.5 million, up 30.8% from $62.3 million in the prior-year period.
Financial Highlights
Cash and cash equivalents totaled $7.7 million as of Jun 30, 2023, compared with $4.8 million as of Dec 31, 2022.
Long-term debt less current maturities amounted to $8,164.3 million as of Jun 30, 2023, higher than $7,741.3 million as of Dec 31, 2022.
Net cash flow provided by operating activities in the first six months of 2023 was $437.6 million compared with $588.3 million a year ago.
Guidance
PNW raised its 2023 consolidated earnings guidance to the range of $4.10-$4.30 per share on a weather-normalized basis from the previously projected band of $3.95-$4.15 per share. The Zacks Consensus Estimate for the same is $4.13 per share, lower than the mid-point of the company’s guided range.
PNW expects 2023 adjusted operating and maintenance expenses in the range of $915-$935 million.
Dominion Energy (D - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 48 cents per share.
D’s long-term (three to five years) earnings growth rate is 20%. It delivered an average earnings surprise of 1.7% in the last four quarters.
PPL Corporation (PPL - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 6.7%.
PPL’s long-term earnings growth rate is 7.42%. It delivered an average earnings surprise of 3.14% in the last four quarters.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 EPS is pinned at $5.61, implying a year-over-year improvement of 6.5%.
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Pinnacle West (PNW) Misses on Q2 Earnings, Raises '23 EPS View
Pinnacle West Capital Corporation (PNW - Free Report) reported second-quarter 2023 operating earnings of 94 cents per share, which missed the Zacks Consensus Estimate of $1.19 by 21%. In the year-ago quarter, the company reported earnings of $1.45 per share.
Total Revenues
Sales for the quarter totaled $1,121.7 million, which surpassed the Zacks Consensus Estimate of $1,032 million by 8.7%. The top line also increased 5.7% from $1,061.7 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
Total operating expenses amounted to $938.4 million, up 11.9% 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.
Total operational and maintenance expenses were $277.2 million, up 13% year over year.
Operating income totaled $183.3 million, down 17.8% from $223.1 million in the year-ago quarter.
Net interest expenses were $81.5 million, up 30.8% from $62.3 million in the prior-year period.
Financial Highlights
Cash and cash equivalents totaled $7.7 million as of Jun 30, 2023, compared with $4.8 million as of Dec 31, 2022.
Long-term debt less current maturities amounted to $8,164.3 million as of Jun 30, 2023, higher than $7,741.3 million as of Dec 31, 2022.
Net cash flow provided by operating activities in the first six months of 2023 was $437.6 million compared with $588.3 million a year ago.
Guidance
PNW raised its 2023 consolidated earnings guidance to the range of $4.10-$4.30 per share on a weather-normalized basis from the previously projected band of $3.95-$4.15 per share. The Zacks Consensus Estimate for the same is $4.13 per share, lower than the mid-point of the company’s guided range.
PNW expects 2023 adjusted operating and maintenance expenses in the range of $915-$935 million.
Zacks Rank
Pinnacle West currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Dominion Energy (D - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 48 cents per share.
D’s long-term (three to five years) earnings growth rate is 20%. It delivered an average earnings surprise of 1.7% in the last four quarters.
PPL Corporation (PPL - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 6.7%.
PPL’s long-term earnings growth rate is 7.42%. It delivered an average earnings surprise of 3.14% in the last four quarters.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 EPS is pinned at $5.61, implying a year-over-year improvement of 6.5%.