Pinnacle West: Q3 Earnings Snapshot
Wednesday, Nov 6, 2024 8:53 am ET
2min read Pinnacle West Capital Corp. (PNW) recently reported its third-quarter earnings, providing insights into the company's financial health and growth prospects. This article will delve into the key aspects of PNW's Q3 earnings, including revenue growth, earnings performance, and future guidance.
Revenue Growth and Analyst Expectations
PNW's revenue in Q3 2024 was $1.77 billion, surpassing analyst expectations of $1.68 billion. This represents a 5.9% weather-normalized sales growth compared to the previous year, driven by robust customer growth of 2.3% and increased energy consumption due to record-breaking summer heat. The company's strong financial results were partially offset by higher operations and maintenance expenses, increased depreciation and amortization, and higher interest charges. Despite these factors, PNW's revenue growth in Q3 2024 demonstrated the company's ability to capitalize on favorable weather conditions and customer demand.
Earnings Performance
PNW's Q3 2024 earnings were down slightly from the same period a year ago, primarily due to higher operations and maintenance expense, increased depreciation and amortization expense, higher interest charges, and higher income taxes. However, these negative factors were partially offset by the favorable impacts of new customer rates and the effects of weather. The company experienced a historic run of record heat, leading to increased energy consumption and robust customer growth of 2.3% and weather-normalized sales growth of 5.9%. Despite the slight decline in earnings, PNW's financial results remained strong, driven by the collective increase in energy consumption and the growing number of customers served.
Full-Year Earnings Guidance
PNW expects full-year earnings to be $5 to $5.20 per share, which is in line with analyst expectations of $5.08. This guidance represents a 17.5% increase from the previous year's earnings of $4.31 per share. The company's strong financial performance and robust customer growth of 2.3% during the quarter, coupled with weather-normalized sales growth of 5.9%, contributed to this positive outlook.
PNW's Q3 2024 earnings, reported on November 6, 2024, showed a slight decrease of about $3 million compared to the same period a year ago. The earnings per share (EPS) of $3.37 was down from $3.50 in the year-ago quarter, primarily due to higher operations and maintenance expenses, increased depreciation and amortization, higher interest charges, and higher income taxes. Despite these factors, the company's financial results were strong, driven by increased energy consumption and customer growth. The stock price reacted positively to the earnings report, gaining 2.9% on August 1, 2024, following the Q2 earnings release. Analysts maintained a moderately optimistic outlook on PNW stock, with an overall "Moderate Buy" rating. Six analysts advised a "Strong Buy" rating, and seven advised "Hold." The average analyst price target was $89.73, suggesting a potential upside of 2.6% from current levels.
In conclusion, PNW's Q3 earnings snapshot reveals a company that has successfully capitalized on favorable weather conditions and customer demand, despite facing higher expenses and taxes. The company's robust customer growth and strong financial performance position it well for future growth. Investors should continue to monitor PNW's progress and consider its potential as a value investment in the energy sector.
Revenue Growth and Analyst Expectations
PNW's revenue in Q3 2024 was $1.77 billion, surpassing analyst expectations of $1.68 billion. This represents a 5.9% weather-normalized sales growth compared to the previous year, driven by robust customer growth of 2.3% and increased energy consumption due to record-breaking summer heat. The company's strong financial results were partially offset by higher operations and maintenance expenses, increased depreciation and amortization, and higher interest charges. Despite these factors, PNW's revenue growth in Q3 2024 demonstrated the company's ability to capitalize on favorable weather conditions and customer demand.
Earnings Performance
PNW's Q3 2024 earnings were down slightly from the same period a year ago, primarily due to higher operations and maintenance expense, increased depreciation and amortization expense, higher interest charges, and higher income taxes. However, these negative factors were partially offset by the favorable impacts of new customer rates and the effects of weather. The company experienced a historic run of record heat, leading to increased energy consumption and robust customer growth of 2.3% and weather-normalized sales growth of 5.9%. Despite the slight decline in earnings, PNW's financial results remained strong, driven by the collective increase in energy consumption and the growing number of customers served.
Full-Year Earnings Guidance
PNW expects full-year earnings to be $5 to $5.20 per share, which is in line with analyst expectations of $5.08. This guidance represents a 17.5% increase from the previous year's earnings of $4.31 per share. The company's strong financial performance and robust customer growth of 2.3% during the quarter, coupled with weather-normalized sales growth of 5.9%, contributed to this positive outlook.
PNW's Q3 2024 earnings, reported on November 6, 2024, showed a slight decrease of about $3 million compared to the same period a year ago. The earnings per share (EPS) of $3.37 was down from $3.50 in the year-ago quarter, primarily due to higher operations and maintenance expenses, increased depreciation and amortization, higher interest charges, and higher income taxes. Despite these factors, the company's financial results were strong, driven by increased energy consumption and customer growth. The stock price reacted positively to the earnings report, gaining 2.9% on August 1, 2024, following the Q2 earnings release. Analysts maintained a moderately optimistic outlook on PNW stock, with an overall "Moderate Buy" rating. Six analysts advised a "Strong Buy" rating, and seven advised "Hold." The average analyst price target was $89.73, suggesting a potential upside of 2.6% from current levels.
In conclusion, PNW's Q3 earnings snapshot reveals a company that has successfully capitalized on favorable weather conditions and customer demand, despite facing higher expenses and taxes. The company's robust customer growth and strong financial performance position it well for future growth. Investors should continue to monitor PNW's progress and consider its potential as a value investment in the energy sector.
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