Pinnacle West Capital Corporation PNW is expected to beat earnings estimates when it reports second-quarter results on Aug 3, 2018 before the opening bell. In the last reported quarter, the utility company delivered a negative earnings surprise of 70.0%.
Here is What Our Quantitative Model Predicts
A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat estimates. Our model shows that Pinnacle West Capital is likely to beat on earnings in the soon-to-be-reported quarter as it possesses both the components.
Earnings ESP: The company’s Earnings ESP is +1.88%.
Pinnacle West Capital Corporation Price and EPS Surprise
Pinnacle West Capital Corporation Price and EPS Surprise | Pinnacle West Capital Corporation Quote
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Pinnacle West Capital carries a Zacks Rank #3, which when combined with a positive Earnings ESP increases the possibility of an earnings beat. You can see the complete list of today’s Zacks #1 Rank stocks here
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revision.
Factors to Consider
Pinnacle West Capital is likely to gain from solid job growth in Metro Phoenix areas, which is positively impacting the commercial and residential real estate markets. Improvement in commercial and housing unit demand is also positively impacting its utility services.
The second-quarter earnings season is expected to benefit from the rate hikes, whereas planned outages are going to offset these positives to some extent.
Other Stocks to Consider
In addition to Pinnacle West Capital, investors may also consider the following companies from the same industry that have the right combination of elements to beat earnings estimates in the to-be-reported quarter:
Dominion Energy Inc. D has an Earnings ESP of +0.84% and a Zacks Rank #2. The company is expected to report second-quarter 2018 earnings on Aug 1.
Alliant Energy Corporation LNT has an Earnings ESP of +1.10% and a Zacks Rank #2. The company is expected to report second-quarter 2018 numbers on Aug 2.
Ameren Corporation DUK has an Earnings ESP of +1.69% and a Zacks Rank #2. The company is slated to report second-quarter 2018 results on Aug 3.
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