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Pinnacle West Misses Q4 Earnings Estimates, Guides In-Line - Analyst Blog

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Pinnacle West Capital Corp. ( PNW ) reported adjusted earnings per share of 5 cents in the fourth quarter of 2014, missing the Zacks Consensus Estimate of 17 cents by 70.6%. Earnings were 77.3% lower than the year-ago earnings of 22 cents per share.

Pinnacle West Capital Corporation - Earnings Surprise | FindTheBest

The plunge was primarily due to planned fossil fuel plant outages.

Pinnacle West's 2014 operating earnings were $3.58 per share, down 2.2% from $3.66 per share in 2013. Earnings were lower than the Zacks Consensus Estimate of $3.71 by 3.5%.

Total Revenue

Quarterly revenues were $726 million, up 3.8% from the year-earlier period. Revenues also beat the Zacks Consensus Estimate by 0.3%.

In 2014, total revenues of $3,491 million were up 1% from $3,454.7 million in 2013. However, revenues for the year missed the Zacks Consensus Estimate marginally by 0.4%.

Operational Highlights

Total electricity sold in the quarter increased 7.5% to 7,264 Gigawatt-hours (GWh) from 6,758 GWh in the year-ago quarter. The company registered 1.4% growth in the customer count in the reported quarter.

Retail electricity sales increased 3.4% to 6,072 GWh. The rise was due to higher electricity consumption by business as well as residential customers.

Of the total generation in 2014, coal-based units contributed nearly 33.5%, followed by nuclear and gas, and oil and other, with 27.2% and 16.2% share respectively.

Operating income decreased 28.3% year over year to $60.2 million in the reported quarter.

Financial Condition

As of Dec 31, 2014, Pinnacle West's cash and cash equivalents were $7.6 million compared with $9.5 million as of Dec 31, 2013.

Long-term debt as of Dec 31, 2014, was $3.03 billion compared with $2.79 billion as of Dec 31, 2013.

Pinnacle West generated $1,100 million in cash from operations during 2014, down 4.6% year over year.

Capital expenditure in 2014 was $910.6 million, down 10.4% year over year.

Guidance

Pinnacle West reaffirmed its earnings expectation for 2014 in the range of $3.75 to $3.95 per share.

Other Utility Company Releases

American Electric Power Co., Inc.'s ( AEP ) earnings per share of 48 cents in the fourth quarter 2014 lagged the Zacks Consensus Estimate of 52 cents by 7.7%.

CMS Energy Corp. ( CMS ) reported fourth-quarter earnings of 35 cents per share, missing the Zacks Consensus Estimate of 36 cents by 2.8%

DTE Energy Co. ( DTE ) reported fourth-quarter 2014 operating earnings per share of $1.17, beating the Zacks Consensus Estimate of $1.04 by 12.5%.

Zacks Rank

Pinnacle West presently carries a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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