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Pinnacle West (PNW) Lags Q1 Earnings & Revenue Estimates

Pinnacle West Capital Corp . PNW reported adjusted earnings per share of 4 cents in the first quarter of 2016, lagging the Zacks Consensus Estimate of 13 cents by 69.2%. Reported earnings also plunged 71.4% year over year.

Total Revenue

In the quarter under review, total revenue of $677.2 million missed the Zacks Consensus Estimates of $683 million by 0.85%. However, reported revenues were marginally ahead of the year-ago figure of $671.2 million.

Operational Highlights

Total operating expenses in first-quarter 2016 rose 3.9% to $627 million due to higher fossil fuel plant maintenance cost.

In the reported quarter, operating income slumped 25.8% year over year to $50.2 million.

Interest expenses increased marginally to $45.5 million from $44.2 million a year ago.

Financial Update

Cash & cash equivalents were $14.5 million as of Mar 31, 2016, substantially down from $39.5 million as of Dec 31, 2015.

Long-term debt was $3,463 million as of Mar 31, 2016, almost flat year over year.

Cash from operating activities was $144.2 million at the end of Mar 31, 2016.

Capital expenditure was $378.5 million in first-quarter 2016, up from $251 million in the prior-year quarter.

Guidance

For 2016, Pinnacle West Capital reiterated its earnings guidance in the range of $3.90-$4.10 per diluted share.

The company expects operating revenues in the range of $2.34-$2.39 billion.

The company expects operating & maintenance expenditure in the range of $0.83-$0.85 billion.

Capital expenditure is projected to be $3.6 billion over the 2016-2018, including $1.2 billion for 2016.

Other Utility Releases

FirstEnergy Corporation FE reported adjusted earnings of 80 cents, above the Zacks Consensus Estimates of 76 cents by 5.3%.

Entergy Corporation ETR reported adjusted earnings of $1.35, above the Zacks Consensus Estimates of $1.17 by 15.4%.

PPL Corporation PPL reported adjusted earnings of 67 cents, missed the Zacks Consensus Estimates of 75 cents by 10.7%.

Zacks Rank

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

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PINNACLE WEST (PNW): Free Stock Analysis Report

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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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