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Pinnacle West Capital (PNW) Q2 Earnings Surpasses Estimates

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Pinnacle West Capital Corporation (PNW - Free Report) reported adjusted earnings per share of $1.49 in the second quarter of 2017 surpassing the Zacks Consensus Estimate of $1.16. Quarterly earnings increased 38% year over year.

The year over year improvement in earnings was primarily due to higher electricity usage as a result of hotter weather.

Total Revenue

In the quarter under review, total revenue of $944.6 million increased from the year-ago figure of $915.4 million by 3.19%.

Operational Highlights

Lower operations and maintenance expenses increased results by 14 cents per share compared with the prior-year period. The lower expenses were largely due to less planned fossil maintenance in second-quarter 2017 compared to a year ago.

The effects of weather variations improved results by 2 cents per share compared with the year-ago period.

Total operating expense in second-quarter 2017 decreased 6.3% to $640.4 million, primarily owing to lower operation and maintenance expenses.

In the reported quarter, operating income increased 31.3% year over year to $304.2 million.

Interest expenses were up 5.5% to $50.1 million from $47.5 million a year ago.

Pinnacle West Capital Corporation Price, Consensus and EPS Surprise

Peer Releases

NiSource Inc. (NI - Free Report) reported second-quarter 2017 operating earnings of 10 cents per share, which was in line with the Zacks Consensus Estimate.  Earnings also increased 25% year over year.

WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate of 59 cents by 6.8% and the year-ago figure of 57 cents by 10.5%.

FirstEnergy Corp. (FE - Free Report) reported second-quarter 2017 operating earnings of 61 cents per share, in line with the Zacks Consensus Estimate. Quarterly earnings were also up 8.9% year over year.

Zacks Rank

Pinnacle West Capital currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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