Pinnacle West Capital (NYSE:PNW) Posts Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Pinnacle West Capital beat quarterly expectations, reporting EPS of $3.49 versus the $3.32 consensus and revenue of $1.97 billion versus $1.90 billion. Revenue increased 8.3% year over year.
• The company raised its quarterly dividend to $0.925 per share, equivalent to $3.70 annually and a 3.4% yield.
• Analysts maintain a consensus “Hold” rating, with an average price target of $103.39; shares recently traded at $107.36.

Pinnacle West Capital (NYSE:PNW - Get Free Report) posted its quarterly earnings data on Tuesday. The utilities provider reported $3.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.32 by $0.17, FiscalAI reports. The company had revenue of $1.97 billion for the quarter, compared to the consensus estimate of $1.90 billion. Pinnacle West Capital had a net margin of 11.52% and a return on equity of 8.99%. The firm's revenue was up 8.3% compared to the same quarter last year. During the same period last year, the company earned $3.39 earnings per share.

Pinnacle West Capital Stock Performance

Shares of PNW traded up $1.41 during midday trading on Tuesday, reaching $107.36. The stock had a trading volume of 354,150 shares, compared to its average volume of 1,241,482. Pinnacle West Capital has a one year low of $86.18 and a one year high of $111.16. The firm has a market cap of $13.01 billion, a PE ratio of 20.55, a P/E/G ratio of 3.75 and a beta of 0.43. The firm has a 50 day simple moving average of $98.46 and a 200-day simple moving average of $100.38. The company has a current ratio of 0.59, a quick ratio of 0.41 and a debt-to-equity ratio of 1.38.

Pinnacle West Capital Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Monday, November 2nd will be given a $0.9250 dividend. This is a boost from Pinnacle West Capital's previous quarterly dividend of $0.91. The ex-dividend date of this dividend is Monday, November 2nd. This represents a $3.70 dividend on an annualized basis and a dividend yield of 3.4%. Pinnacle West Capital's payout ratio is 70.88%.

Analysts Set New Price Targets

PNW has been the subject of a number of analyst reports. Barclays decreased their target price on shares of Pinnacle West Capital from $108.00 to $94.00 and set an "equal weight" rating for the company in a research report on Thursday, October 1st. TD Cowen reissued a "hold" rating on shares of Pinnacle West Capital in a research report on Wednesday, August 12th. BMO Capital Markets reduced their price objective on shares of Pinnacle West Capital from $106.00 to $104.00 and set a "market perform" rating for the company in a research note on Wednesday, July 22nd. Scotiabank initiated coverage on Pinnacle West Capital in a report on Tuesday, September 29th. They issued a "sector outperform" rating and a $104.00 price objective for the company. Finally, Truist Financial reduced their price target on Pinnacle West Capital from $101.00 to $99.00 and set a "hold" rating for the company in a research report on Monday, October 5th. Five analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average price target of $103.39.

Insider Transactions at Pinnacle West Capital

In related news, SVP Luis Esparza, Jr. sold 1,800 shares of Pinnacle West Capital stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $102.01, for a total transaction of $183,618.00. Following the completion of the transaction, the senior vice president owned 4,910 shares in the company, valued at approximately $500,869.10. This trade represents a 26.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Elizabeth Blankenship sold 980 shares of the business's stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $99.17, for a total value of $97,186.60. Following the transaction, the chief accounting officer directly owned 10,886 shares in the company, valued at approximately $1,079,564.62. This trade represents a 8.26% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 0.19% of the company's stock.

Pinnacle West Capital Company Profile

Pinnacle West Capital Corporation NYSE: PNW is an energy holding company based in Phoenix, Arizona. Its principal subsidiary, Arizona Public Service Company (APS), is an electric utility that generates, transmits and distributes electricity to customers across Arizona.

APS serves residential, commercial, industrial and governmental customers through a diverse power portfolio that includes nuclear, natural gas, coal, solar and other renewable energy resources. The utility is also involved in maintaining and expanding the electric grid, supporting energy-efficiency programs and developing cleaner energy resources.

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