Pinnacle West Capital Corporation PNW reported adjusted earnings per share of 19 cents in the fourth quarter of 2017, surpassing the Zacks Consensus Estimate of 10 cents by 90%.
Despite an increase in retail rates and revenues, earnings were lower than the year-ago quarter due to higher operating expenses, effects of weather and a higher effective tax rate.
Total Revenues
In the quarter under review, total revenues of $759.7 million reflected year-over-year growth of 2.75%.
Operational Highlights
In 2017, higher operations and maintenance expenses adversely impacted earnings by 3 cents per share compared with the prior-year period. The increased expenses were largely due to higher employee benefit costs.
In 2017, effects of weather variations positively impacted earnings by 3 cents per share compared with 2016.
Operating income in 2017 increased 9.2% year over year to $934.4 million.
Full-year interest expenses were up 6.4% to $197.7 million from $185.8 million in 2016.
Guidance
Pinnacle West Capital increased 2018 earnings guidance in the range of $4.35 to $4.55 per share from $4.25 to $4.45 per share a year ago.
Zacks Rank
Pinnacle West Capital carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Dominion Energy Inc. D reported fourth-quarter 2017 operating earnings of 91 cents per share, beating the Zacks Consensus Estimate of 88 cents by 3.4%.
NextEra Energy, Inc. NEE reported fourth-quarter 2017 adjusted earnings of $1.25 per share, missing the Zacks Consensus Estimate of $1.31 by 4.58%.
FirstEnergy Corp. FE reported fourth-quarter 2017 operating earnings of 71 cents per share, beating the Zacks Consensus Estimate of 69 cents by 2.9%.
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