What trends can investors expect from PNW's earnings in 2025?

**Pinnacle West Capital's (PNW) earnings in 2025 are expected to show a slight decline.** Here's a detailed analysis:

1. **Expected EPS and Revenue**: PNW's estimated EPS for 2025 is $4.53, which represents an 11% drop from the previous year's EPS of $5.24. The projected revenue for the year is $5.22 billion, which is approximately in line with the previous year's revenue of $5.1 billion.

2. **Analyst Forecasts**: Analysts have updated their estimates following PNW's latest results, with the new forecast for 2025 showing a slight decline in EPS but relatively stable revenue. This suggests that while the company's earnings may not grow significantly, they are not expected to fall dramatically either.
3. **Market Performance and Outlook**: PNW's stock has outperformed the Utilities Select Sector SPDR Fund (XLU) in recent months, indicating a bullish price trend. The company's long-term EPS growth guidance is 5%-7%, with a specific guidance for 2025 set at $4.40 to $4.60 per share. This suggests that while the short-term projections may show a decline, the company is still expected to grow earnings steadily in the medium to long term.
4. **Regulatory and Operational Factors**: PNW has faced regulatory challenges, including higher financing costs and depreciation due to regulatory lag. However, the company has met or exceeded its targets for 2024, emphasizing strong service reliability, which could positively influence earnings as the company continues to invest in its infrastructure.

In conclusion, while PNW's earnings in 2025 are expected to show a slight decline, the company's stable revenue projections, positive market performance, and long-term growth guidance suggest that investors should expect a relatively stable earnings performance with potential for modest growth in the future.