Pinnacle West (PNW) Earnings Beat Estimates in Q4, Sales Down

Zacks Equity Research

Pinnacle West Capital Corporation PNW delivered adjusted earnings per share (EPS) of 57 cents in the fourth quarter of 2019, which beat the Zacks Consensus Estimate of 47 cents by 21.3%. In the year-ago quarter, the company had reported adjusted earnings of 23 cents. The bottom-line reflects improved customer growth, infrastructure investments and cost management.

In 2019, Pinnacle West Capital generated earnings of $4.77 per share, up from $4.54 in 2018.

Total Revenues

In the quarter under review, total revenues of $670.4 million fell 11.4% on a year-over-year basis.

In 2019, the company delivered revenues of $3.47 billion, down 6% from $3.69 billion in 2018.

Pinnacle West Capital Corporation Price, Consensus and EPS Surprise

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

In fourth-quarter 2019, total operating expenses were $658.4 million, down 4.5% from the year-ago quarter’s tally.

Operating income plunged 82.1% year over year to $11.9 million.

Interest expenses declined to $59.6 million from $62.2 million in the year-ago quarter.

The company set a new goal to serve APS customers with 100% clean energy by 2050.

Guidance

Management reaffirmed 2020 EPS in the range of $4.75-$4.95, whose mid-point of $4.85 is in line with the current Zacks Consensus Estimate.

Zacks Rank

Pinnacle West currently carries a Zacks Rank #4 (Sell).

 You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

Xcel Energy XEL posted fourth-quarter 2019 operating earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 5.6%.

NextEra Energy NEE reported fourth-quarter 2019 adjusted earnings of $1.44 per share, which lagged the Zacks Consensus Estimate of $1.54 by 6.5%.

CMS Energy Corp. CMS reported fourth-quarter 2019 adjusted earnings of 68 cents, which missed the Zacks Consensus Estimate of 69 cents.

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