Utility firm Pinnacle West beats Q3 profit estimates on higher energy consumption, raises guidance

Pinnacle West Capital

03/11/2025 13:29

Overview

Pinnacle West Q3 net income rises to $413.2 mln, driven by customer growth and usage

Adjusted EPS for Q3 beats analyst expectations

Company plans new natural gas plant to support future energy needs

Outlook

Company raises 2025 earnings guidance to $4.90-$5.10 per share

Company estimates 2026 earnings at $4.55-$4.75 per share

Result Drivers

CUSTOMER GROWTH - Increased customer usage and growth drove Q3 results, supported by Arizona's rapid population growth and record summer heat

LOWER COSTS - Lower operations and maintenance expenses contributed positively to Q3 results

WEATHER IMPACT - Despite lower temperatures compared to last year, energy consumption rose due to higher-than-average temperatures

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Operating Revenue
$1.82 bln
Q3 EPS
Beat
$3.39
$3.11 (10 Analysts)
Q3 Net Income
$417.51 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the electric utilities peer group is "buy"

Wall Street's median 12-month price target for Pinnacle West Capital Corp is $97.00, about 8.7% above its October 31 closing price of $88.52

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)