Pinnacle West Capital Corp. PNW reported adjusted earnings per share of $2.35 in the third quarter of 2016, lagging the Zacks Consensus Estimate of $2.41 by 2.5%. Reported earnings however, inched up 2.2% year over year.
Total Revenue
In the quarter under review, total revenue of $1,166.9 million missed the Zacks Consensus Estimates of $1,220 million by 4.3%. Reported revenues were also declined 2.7% from the year-ago figure of $1,199 million.
Mild temperatures in August and September were responsible for the decline in the top line.
Operational Highlights
Total operating expenses in third-quarter 2016 fell 5.1% to $715.6 million primarily due to lower fuel and purchased power, and other expenses.
In the reported quarter, operating income increased 1.4% over year to $451.3 million.
Interest expenses increased 2.4% to $46.9 million from $45.8 million a year ago.
Financial Update
Cash & cash equivalents were $48.3 million as of Sep 30, 2016, up from $39.5 million as of Dec 31, 2015.
Long-term debt was $4,145.4 million as of Sep 30, 2016, up from $3,462.4 millionas of Dec 31, 2015.
Cash from operating activities in the first nine months of 2016 was $765.1 million, down from $821.4 million in the prior-year period.
Guidance
For 2016, Pinnacle West Capital reiterated its earnings guidance in the range of $3.90–$4.10 per diluted share.
The company expects operating & maintenance expenditure in the range of $825–$845 million.
Capital expenditure is projected to be $1,233 million, $1,337 million and $1,124 million for 2016, 2017 and 2018, respectively.
Other Utility Releases
NextEra Energy, Inc.NEE announcedthird-quarter 2016 adjusted earnings of $1.74 per share, outpacing the Zacks Consensus Estimate of $1.65 by 5.5%.
WEC Energy Group WEC reported third-quarter 2016 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 60 cents by 15%.
Xcel Energy Inc. XEL recorded third-quarter operating earnings of 90 cents per share, outpacing the Zacks Consensus Estimate of 87 cents by 3.5%.
Zacks Rank
Pinnacle West presently carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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