NYSE$PNW

Pinnacle West Capital Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Pinnacle West's financial results decreased due to mild weather and increased operating costs.

Pinnacle West reported a decrease in net income for the second quarter of 2023, with net income attributable to common shareholders at $106.7 million, or $0.94 per diluted share, compared to $164.3 million, or $1.45 per diluted share, for the same period in 2022. The decrease was primarily due to mild weather, higher operating and maintenance expenses, increased interest charges, and lower pension credits, partially offset by higher transmission revenue and revenue from the Lost Fixed Cost Recovery mechanism. However, the company increased its 2023 consolidated earnings range to $4.10 to $4.30 per diluted share on a weather-normalized basis.

  • Second-quarter earnings were impacted by mild weather conditions and higher operating costs.
  • APS is focused on supporting customers during the summer season.
  • The company is actively seeking flexible energy resources to meet Arizona's growing energy needs.
  • A new all-time peak of 8,193 megawatts was hit on July 20.

Headline financials

Total Revenue

$1.12B

Previous: $1.06B+5.7%
EPS (adj)

$0.94

Previous: $1.45-35.2%
Retail Sales Growth

1.4%

Previous: 3.2%-56.3%
Free Cash Flow

$111M

Previous: $169M-34.2%
Net Income

$111M

Previous: $169M-34.2%
Operating Income

$183M

Previous: $223M-17.8%
Gross Profit

$519M

Previous: $523M-0.8%
Cash & Equivalents

$7.66M

Previous: $29.2M-73.8%
Total Assets

$24B

Previous: $22.5B+6.6%
Stock-Based Comp

$3.59M

Previous: $2.53M+41.7%

Revenue & EPS history

Pinnacle West · Revenue · Quarterly

$1.12B

Q2 2023+5.7%vs Q2 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

The company increased its 2023 consolidated earnings range to $4.10 to $4.30 per diluted share on a weather-normalized basis.

Tailwinds

  • Positive impact of the 2019 rate case appeal resolution in June
  • Extremely hot weather to start the third quarter
  • Increase its 2023 consolidated earnings range
  • Company in strong position entering the second half of the year
  • Robust customer growth

Headwinds

  • Higher than previously forecasted operations and maintenance expenses
  • More moderate weather-normalized sales growth
  • Mild weather
  • Higher operating costs
  • Higher interest charges

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 Q2 2023

Historical avgQ2 2023

+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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