Pinnacle West Capital Prepares for Q3 Earnings Announcement
Profit Expectations and Market Performance Highlight Upcoming Report
Pinnacle West Capital Corporation (PNW, based in Phoenix, Arizona) stands out as a key utility holding company, supplying electricity mainly through its subsidiary, Arizona Public Service. With a market cap of $9.9 billion, Pinnacle West prioritizes sustainable energy and dependable power delivery in Arizona. The company plans to announce its Q3 earnings before the market opens on Wednesday, Nov. 6.
Leading up to the announcement, analysts anticipate a profit of $3.14 per share, a decrease of 10.3% compared to the $3.50 per share reported in the same quarter last year. Notably, Pinnacle West has outperformed Wall Street’s EPS estimates for the past four quarters.
In its last quarter, the company reported adjusted earnings of $1.76 per share, which exceeded the consensus estimate by 34.4%. This strong performance was driven by favorable weather, increased customer demand, higher revenues, and effective cost management.
For fiscal 2024, analysts project PNW to report an EPS of $4.77, reflecting an 8.2% increase from the $4.41 expected in fiscal 2023.
Year-to-date, PNW stock has risen by 21.7%. However, it underperformed relative to the S&P 500 Index’s ($SPX) 22.7% gain and the Utilities Select Sector SPDR Fund’s (XLU) 28.9% increase in the same period.
On August 1, shares of Pinnacle West Capital rose by 2.9% after the company released its Q2 earnings, reporting revenue of $1.31 billion, which exceeded Wall Street’s expectations by 8.4%. This growth resulted from warmer-than-average weather, high customer usage, and overall company growth.
The consensus on PNW stock remains moderately optimistic, with an overall rating of “Moderate Buy.” Among 13 analysts monitoring the stock, six recommend a “Strong Buy,” while seven suggest a “Hold.”
Pinnacle West’s average analyst price target is set at $89.73, indicating a potential upside of 2.6% from its current trading levels.
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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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