PNW Earnings Prediction
The chart below shows how PNW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PNW sees a -2.27% change in stock price 10 days leading up to the earnings, and a +0.72% change 10 days following the report. On the earnings day itself, the stock moves by +0.85%. This data can give you a slight idea of what to expect for the next quarter's release.
PNW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.77B
8.00%
35.13%
Gross Margin
51.33%
2.54%
3.89%
Operating Margin
30.92%
-1.90%
28.99%
Net Margin
22.57%
-8.18%
41.95%
EPS
3.37
-3.71%
91.48%
No Data Available
PNW Earnings Analysis
Pinnacle West Capital Corporation Corporation (PNW.N) Earnings Conference Call
Positive
Peak Energy Demand Record: 1. Record Energy Demand: Pinnacle West achieved an all-time peak energy demand of 8,210 megawatts on August 4th, surpassing previous records and demonstrating the effectiveness of their generation fleet during extreme weather conditions.
Customer Segment Expansion: 2. Strong Customer Growth: The company reported a weather-normalized sales growth of 5.9% for the third quarter, with a notable 10.3% growth in commercial and industrial (C&I) customer segments, marking the third consecutive quarter of over 10% growth in this area.
Earnings Guidance Update: 3. Increased Earnings Guidance: Pinnacle West updated its 2024 earnings guidance to a range of $5.00 to $5.20 per share, reflecting strong sales growth and favorable weather conditions contributing positively to financial performance.
Resource Planning Success: 4. Successful Resource Planning: The company successfully contracted for the Redhawk power plant expansion, expected to add over 800 megawatts of generation and battery storage by 2028, ensuring long-term resource adequacy and reliability for customers.
Customer Satisfaction Excellence: 5. High Customer Satisfaction: Year-to-date, Pinnacle West's customer care phone center ranked first nationally among peers in the residential J.D. Power Electric Customer Satisfaction Study, placing the company in the top 10 utilities overall for customer satisfaction.
Negative
Earnings Per Share Decline: 1. Decline in Earnings Per Share: Pinnacle West reported earnings of $3.37 per share for Q3 2024, a decrease of $0.13 compared to the same quarter last year, primarily due to higher O&M and depreciation expenses.
Rising Operating Expenses: 2. Increased Operating Expenses: The company raised its forecasted O&M expenses for 2024 to a range of $1.01 billion to $1.03 billion, reflecting a significant increase from previous estimates due to inflation and operational costs.
Earnings Impact from Regulation: 3. Regulatory Lag Impact: The anticipated decrease in earnings per share for 2025 is projected to be between $4.40 to $4.60, largely attributed to additional costs associated with regulatory lag, including higher debt and equity financing costs.
Increased Capital Expenditure: 4. Higher Capital Expenditure: Pinnacle West increased its capital expenditure plan for 2024 from $1.95 billion to $2.05 billion, indicating a need for more investment without immediate returns, which could strain financial resources.
Rate Case Filing Delay: 5. Delayed Rate Case Filing: The earliest potential filing for a new rate case is mid-2025, which could prolong the financial lag and delay recovery of increased costs, impacting overall financial performance.
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PNW Earning Call Sentiment
Pinnacle West Capital Corporation (PNW) Q3 2024 Earnings Call Transcript
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00:00
00:00
PNW.N
1.51%Positive
The earnings call presents a positive outlook with a stable EPS guidance and increased capital expenditure plans, indicating growth. Despite a slight EPS decline, strong sales growth and customer expansion, particularly in the semiconductor sector, are promising. The Q&A highlights potential regulatory alignment and significant data center demand. Although some uncertainties remain, such as regulatory lag and inflation impact, the overall sentiment is positive, with a focus on long-term growth and shareholder returns.
