NYSE$PNW

Pinnacle West Capital Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Pinnacle West's Q1 2021 earnings were reported, showing an increase in net income and EPS compared to the same period last year, driven by weather, higher transmission revenues, and pension credits, despite increased operations and maintenance expenses.

Pinnacle West reported a consolidated net income attributable to common shareholders of $35.6 million, or $0.32 per diluted share, for the quarter ended March 31, 2021, compared to $30.0 million, or $0.27 per diluted share, for the same period in 2020. The results were positively impacted by weather, higher transmission revenues, and higher pension credits, offsetting increased operations and maintenance expenses.

  • Pinnacle West reported Q1 2021 earnings in line with company expectations.
  • Customer growth was strong at 2.1% for the quarter, reflecting continued growth in Arizona.
  • The company is well-prepared to deliver reliable service during Arizona's extreme summer temperatures.
  • First-quarter results were positively impacted by weather, higher transmission revenues, and higher pension and other postretirement non-service credits.

Headline financials

Total Revenue

$696M

Previous: $662M+5.2%
EPS (adj)

$0.32

Previous: $0.27+18.5%
Free Cash Flow

$40.5M

Previous: $34.9M+16.2%
Net Income

$40.5M

Previous: $34.9M+16.2%
Operating Income

$47.5M

Previous: $40.4M+17.6%
Gross Profit

$340M

Previous: $319M+6.6%
Cash & Equivalents

$17.2M

Previous: $63.1M-72.8%
Total Assets

$20.2B

Previous: $18.6B+8.7%
Stock-Based Comp

$11.3M

Previous: $6.28M+80.5%

Revenue & EPS history

Pinnacle West · Revenue · Quarterly

$696M

Q1 2021+5.2%vs Q1 2020
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Forward guidance

The company is projecting peak demand of 7,521 megawatts this year – lower than last summer’s record-breaking 7,660 megawatts, but 406 megawatts higher than 2019.

Tailwinds

  • Resource planning
  • Sufficient reserve margins
  • Customer partnerships to manage peak demand
  • Fire mitigation
  • Operational preparedness

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.4%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.9%

Avg return

30 days after

58%

39 / 67 earnings

Positive

+5.1%

Q4 2021

Best reaction

-5.2%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.7%-4.2%-6.5%
Q4 2025-0.3%+0.5%-0.4%
Q3 2025-0.1%-0.6%+0.1%
Q1 2025-1.9%-1.8%-4.2%
Q4 2024+1.1%+0.5%+1.0%
Q3 2024+2.9%+6.0%+5.6%
Q2 2024+3.1%-0.3%+2.3%
Q1 2024+1.1%+2.0%+5.2%
Q4 2023-3.4%-1.8%+7.9%
Q3 2023-2.2%-4.4%-0.6%
Q2 2023-4.8%-6.6%-8.0%
Q1 2023+2.2%+1.8%-1.4%
Q4 2022+0.4%+4.1%+6.9%
Q3 2022+3.3%+1.5%+16.1%
Q2 2022+3.8%+2.4%+1.5%
Q1 2022+0.8%+2.8%+7.3%
Q4 2021+5.1%+4.8%+12.8%
Q3 2021+0.1%+1.5%+4.0%
Q2 2021+2.7%+2.7%-1.3%
Q1 2021+1.2%+3.7%+2.8%
Q4 2020-3.3%-4.2%+6.3%
Q3 2020-2.6%-1.3%+0.8%
Q2 2020+3.0%+1.3%-9.2%
Q1 2020+2.6%+1.0%+10.6%
Q4 2019-0.1%-3.8%-35.2%
Q3 2019-5.2%-6.1%-5.5%
Q2 2019-0.6%-0.0%+0.9%
Q1 2019-2.3%-1.9%-1.4%
Q4 2018+1.9%+1.1%+5.2%
Q3 2018+3.6%+4.5%+6.3%
Q2 2018+1.3%+1.0%-1.9%
Q1 2018-0.3%-0.3%-3.0%
Q4 2017+4.6%+0.3%+1.3%
Q3 2017+1.1%+2.1%+3.5%
Q2 2017+0.9%+1.7%+3.0%
Q1 2017+0.4%+1.0%+5.9%
Q4 2016+0.8%+2.4%+4.5%
Q3 2016-0.5%+1.7%-1.3%
Q2 2016-1.7%-2.9%-5.9%
Q1 2016+2.5%
Q4 2015+3.1%
Q3 2015+1.6%
Q2 2015+0.3%
Q1 2015-0.2%
Q4 2014+0.3%
Q3 2014+2.9%
Q2 2014-1.6%
Q1 2014-2.3%
Q4 2013-0.5%
Q3 2013-2.4%
Q2 2013-1.1%
Q1 2013+0.2%
Q4 2012-0.4%
Q3 2012-2.1%
Q2 2012+1.3%
Q1 2012+0.1%
Q4 2011+0.0%
Q3 2011+0.4%
Q2 2011-2.2%
Q1 2010+2.1%
Q1 2011+1.1%
Q4 2008-0.8%
Q3 2010-1.5%
Q3 2009-1.5%
Q2 2010+2.5%
Q2 2009+2.5%
Q4 2009+2.5%

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