What's in Store for Pinnacle West Capital (PNW) in Q4 Earnings?

Pinnacle West Capital Corporation PNW is scheduled to release fourth-quarter 2023 results on Feb 27, before market open. The company delivered an earnings surprise of 5.1% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

Pinnacle West Capital’s fourth-quarter revenues are expected to have benefited from retail customer growth and an increase in electricity sales, owing to strong growth in the Arizona region. Increased contribution from Transmission is also expected to have boosted revenues in the to-be-reported quarter.

However, planned outage in the fourth quarter might have resulted in higher operations and maintenance expenses. Still-high interest rates and increased depreciation and amortization must have offset some positives in the to-be-reported quarter.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of 10 cents per share, indicating a year-over-year improvement of 52.4%.

The Zacks Consensus Estimate for revenues is pinned at $1.01 billion, implying a year-over-year increase of 0.5%.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Pinnacle West Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.  
 

Pinnacle West Capital Corporation Price and EPS Surprise

Pinnacle West Capital Corporation Price and EPS Surprise

Pinnacle West Capital Corporation price-eps-surprise | Pinnacle West Capital Corporation Quote

Earnings ESP: The company’s Earnings ESP is -93.56%. 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. You can see the complete list of today's Zacks #1 Rank stocks here.

Upcoming Releases

Investors may consider the following player from the same sector which have the right combination of elements to come up with an earnings beat this reporting cycle.

AES AES is expected to beat on earnings when it reports fourth-quarter results on Feb 26, after market close. It has an Earnings ESP of +0.36% and a Zacks Rank #3 at present.

AES’ long-term (three to five years) earnings growth rate is 8.79%. The Zacks Consensus Estimate for earnings is pegged at 69 cents per share.

Sempra Energy SRE is expected to beat on earnings when it reports fourth-quarter results on Feb 27, before market open. It has an Earnings ESP of +0.29% and a Zacks Rank #3 at present.

SRE’s long-term (three to five years) earnings growth rate is 4.95%. It delivered an average earnings surprise of 9% in the last four quarters.

Consolidated Water CWCO is expected to beat on earnings when it reports fourth-quarter results soon. It has an Earnings ESP of +4.44% and a Zacks Rank #2 at present.

CWCO’s long-term earnings growth rate is 8%. It delivered an average earnings surprise of 61.6% in the last four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
 

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Sempra Energy (SRE) : Free Stock Analysis Report

Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report

The AES Corporation (AES) : Free Stock Analysis Report

Consolidated Water Co. Ltd. (CWCO) : 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.

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