Pinnacle West Capital Set to Release Q4 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy PNW?
Source: seekingalpha
- Earnings Announcement: Pinnacle West Capital is set to announce its Q4 earnings on February 25 before market open, with consensus EPS estimate at $0.02 and revenue expected to reach $1.17 billion, reflecting a 6.4% year-over-year growth.
- Upward Revisions: Over the last three months, EPS estimates have seen four upward revisions with no downward adjustments, indicating increased analyst confidence in the company's profitability, while revenue estimates have also been revised upward twice, showcasing optimism about its growth prospects.
- Dividend Declaration: Pinnacle West Capital declared a dividend of $0.91 per share, demonstrating the company's ability to maintain stable cash flow and shareholder return strategies in the current economic environment, which bolsters investor confidence.
- Market Environment Impact: The cancellation of a $1.8 billion clean energy loan to Pinnacle West by Trump may affect the company's future project financing, necessitating close attention to how it navigates the challenges posed by policy changes.
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Analyst Views on PNW
Wall Street analysts forecast PNW stock price to fall
8 Analyst Rating
0 Buy
8 Hold
0 Sell
Hold
Current: 99.600
Low
85.00
Averages
94.14
High
99.00
Current: 99.600
Low
85.00
Averages
94.14
High
99.00
About PNW
Pinnacle West Capital Corporation is an energy holding company that conducts business through its subsidiaries, Arizona Public Service Company (APS), El Dorado Investment Company (El Dorado) and Pinnacle West Power, LLC. The Company's business segment is its regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities, and includes electricity generation, transmission, and distribution. APS provides electric service to approximately 1.4 million customers. APS is also the operator and co-owner of Palo Verde, a primary source of electricity for the southwest United States and the nuclear power plant in the United States. El Dorado owns debt investments and minority interests in several energy-related investments and Arizona community-based ventures. Palo Verde is a three-unit nuclear power plant located approximately 50 miles west of Phoenix, Arizona.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pinnacle West Capital Set to Release Q4 Earnings
- Earnings Announcement: Pinnacle West Capital is set to announce its Q4 earnings on February 25 before market open, with consensus EPS estimate at $0.02 and revenue expected to reach $1.17 billion, reflecting a 6.4% year-over-year growth.
- Upward Revisions: Over the last three months, EPS estimates have seen four upward revisions with no downward adjustments, indicating increased analyst confidence in the company's profitability, while revenue estimates have also been revised upward twice, showcasing optimism about its growth prospects.
- Dividend Declaration: Pinnacle West Capital declared a dividend of $0.91 per share, demonstrating the company's ability to maintain stable cash flow and shareholder return strategies in the current economic environment, which bolsters investor confidence.
- Market Environment Impact: The cancellation of a $1.8 billion clean energy loan to Pinnacle West by Trump may affect the company's future project financing, necessitating close attention to how it navigates the challenges posed by policy changes.
See More
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Trump Administration Cancels $1.8B Loan Guarantee for Pinnacle West
- Loan Guarantee Cancellation: The Trump administration has canceled an $1.8 billion loan guarantee for Pinnacle West's Arizona utility subsidiary, which was intended for renewable energy deployment, significantly impacting the company's future clean energy investment plans.
- Financing Review Impact: This cancellation is part of a broader review of approximately $30 billion in financing from the Biden administration, indicating a major shift in policy direction that could lead to a more challenging financing environment for clean energy projects.
- Project Details Disclosure: The loan guarantee was earmarked for renewable energy, electric transmission lines, and a battery storage project linked to an existing solar site, and its failure to finalize will hinder Arizona's energy transition efforts.
- Subsequent Project Cancellations: In addition to Pinnacle West's project, the Department of Energy has also canceled financing commitments to other companies, including a $3 billion loan guarantee to solar developer Sunnova Energy, reflecting a diminishing government support for clean energy initiatives.
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Pinnacle West Capital Set to Release Q4 Earnings
- Earnings Announcement: Pinnacle West Capital is set to announce its Q4 earnings on February 25 before market open, with consensus EPS estimate at $0.02 and revenue expected to reach $1.17 billion, reflecting a 6.4% year-over-year growth.
- Upward Revisions: Over the last three months, EPS estimates have seen four upward revisions with no downward adjustments, indicating increased analyst confidence in the company's profitability, while revenue estimates have also been revised upward twice, showcasing optimism about its growth prospects.
- Dividend Declaration: Pinnacle West Capital declared a dividend of $0.91 per share, demonstrating the company's ability to maintain stable cash flow and shareholder return strategies in the current economic environment, which bolsters investor confidence.
- Market Environment Impact: The cancellation of a $1.8 billion clean energy loan to Pinnacle West by Trump may affect the company's future project financing, necessitating close attention to how it navigates the challenges posed by policy changes.
See More
Stocks to Keep an Eye on This Week: Nvidia, Warner Bros., Berkshire Hathaway, Home Depot, and Others
Market Performance: The Nasdaq Composite and S&P 500 indexes ended their multi-week losing streaks, increasing by 1.5% and 1.1%, respectively.
Supreme Court Ruling: A significant factor in the market rise was the Supreme Court's decision to strike down some of President Trump's tariffs.
White House Response: Despite the ruling, the White House announced plans to explore alternative methods to enforce its tariff policy.
Investor Sentiment: The combination of the court ruling and the White House's response influenced investor sentiment positively, contributing to the uptick in equities.
See More
Trump's New Tariff Plan Triggers Market Volatility
- Tariff Policy Shift: Following the Supreme Court ruling, Trump plans to impose a new 10% global tariff, which could lead to the U.S. needing to refund billions in tariffs to importers; the market reacted with initial gains followed by losses, reflecting investor uncertainty about future trade relations.
- Legal Challenge Outlook: The Supreme Court's ruling that Trump wrongfully invoked the International Emergency Economic Powers Act to implement tariffs pushes the refund issue back to lower courts, indicating that firms will face lengthy legal processes to obtain refunds, potentially impacting their cash flow and investment decisions.
- Cautious Market Sentiment: While geopolitical risks have not historically impacted the stock market significantly, investors may reduce exposure as stocks approach all-time highs, especially with the upcoming Nvidia earnings report raising concerns about potential disappointments, leading to heightened market tension.
- Economic Stimulus Expectations: Despite uncertainties, investors remain hopeful that the fiscal stimulus from last year's legislation will begin to take effect in the coming months, potentially alleviating signs of economic weakness and supporting long-term market growth.
See More
Trump Administration Cancels $1.8B Loan Guarantee for Pinnacle West
- Loan Guarantee Cancellation: The Trump administration has canceled an $1.8 billion loan guarantee for Pinnacle West's Arizona utility subsidiary, which was intended for renewable energy deployment, significantly impacting the company's future clean energy investment plans.
- Financing Review Impact: This cancellation is part of a broader review of approximately $30 billion in financing from the Biden administration, indicating a major shift in policy direction that could lead to a more challenging financing environment for clean energy projects.
- Project Details Disclosure: The loan guarantee was earmarked for renewable energy, electric transmission lines, and a battery storage project linked to an existing solar site, and its failure to finalize will hinder Arizona's energy transition efforts.
- Subsequent Project Cancellations: In addition to Pinnacle West's project, the Department of Energy has also canceled financing commitments to other companies, including a $3 billion loan guarantee to solar developer Sunnova Energy, reflecting a diminishing government support for clean energy initiatives.
See More
Utility Stocks See EPS Revisions Upward, Engie Receives A+ Rating
- Earnings Upgrades: As earnings season kicks off, utility stocks are seeing upward revisions in earnings estimates, with Engie SA and Iberdrola, S.A. receiving A+ ratings, indicating strong analyst confidence in their profit outlook.
- Analyst Confidence Rising: The EPS revision ratings reflect an increase in analysts' confidence regarding profitability, with Atmos Energy Corporation and AXIA Energia SA receiving A and A ratings respectively, suggesting improving earnings capabilities.
- Market Focus: Major utility stocks like Brookfield Infrastructure Partners and Sempra have also achieved A ratings in EPS revisions, drawing significant investor interest that could lead to stock price increases.
- Increased Investor Interest: Ameren Corporation and Consolidated Edison, rated A-, demonstrate ongoing market interest in their growth potential, which may influence future investment decisions.
See More
Friday's Underperforming Sectors: Consumer Goods and Utilities
Consumer Products Sector Performance: The Consumer Products sector is underperforming with a 0.7% loss, notably impacted by Lamb Weston Holdings Inc (down 24.0%) and Nike (down 11.3%). Year-to-date, Lamb Weston is down 30.32% and Nike is down 20.92%.
Utilities Sector Performance: The Utilities sector shows a 0.5% loss, with Constellation Energy Corp and Pinnacle West Capital Corp experiencing losses of 1.3% and 1.2%, respectively. Year-to-date, Constellation is up 60.00% and Pinnacle West is up 7.41%.
ETFs Overview: The iShares U.S. Consumer Goods ETF (IYK) is flat on the day but up 5.46% year-to-date, while the Utilities Select Sector SPDR ETF (XLU) is down 0.5% today but up 15.73% year-to-date.
Market Snapshot: In afternoon trading, seven sectors of the S&P 500 are up while two sectors, Consumer Products and Utilities, are down.
See More
