NYSE$PNW

Pinnacle West Capital Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Pinnacle West's Q3 2022 results were lower due to the unfavorable outcome of the prior rate case, but buoyed by strong operational performance and warmer weather.

Pinnacle West reported a net income of $326.3 million, or $2.88 per diluted share, for the third quarter of 2022, compared to $339.8 million, or $3.00 per share, for the same period a year ago. The company's lower third-quarter results reflect the unfavorable outcome of the company's prior rate case, which was implemented on Dec. 1, 2021.

  • Quarterly results were supported by strong operational performance and warmer weather than the previous year.
  • Employees ensured reliable customer service despite a damaging monsoon season.
  • APS was among the most improved utilities for residential and business customer satisfaction.
  • The company increased its 2022 consolidated earnings guidance range to $4.20 to $4.35 per diluted share.

Headline financials

Total Revenue

$1.47B

Previous: $1.31B+12.4%
EPS (adj)

$2.88

Previous: $3.00-4.0%
Retail Sales Growth

1.3%

No prior period
Free Cash Flow

$331M

Previous: $344M-3.9%
Net Income

$331M

Previous: $344M-3.9%
Operating Income

$418M

Previous: $429M-2.7%
Gross Profit

$723M

Previous: $717M+0.8%
Cash & Equivalents

$7.03M

Previous: $25.7M-72.6%
Total Assets

$22.8B

Previous: $21.5B+6.1%
Stock-Based Comp

$4.95M

Previous: $3.22M+53.6%

Revenue & EPS history

Pinnacle West · Revenue · Quarterly

$1.47B

Q3 2022+12.4%vs Q3 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Forward guidance

Given the positive year-to-date impacts of beneficial weather, strong sales and customer growth, the company increased its 2022 consolidated earnings guidance range to $4.20 to $4.35 per diluted share from a previously disclosed range of $3.90 to $4.10 per share.

Tailwinds

  • Ensuring service reliability and resilience
  • Securing a clean, balanced energy supply for Arizona
  • Continuously improving support for all customers, including expanded bill assistance programs for those who need additional support.
  • Beneficial weather
  • Strong sales and customer growth

Headwinds

  • Inflationary pressures
  • Unfavorable outcome of the company’s prior rate case
  • Higher depreciation and amortization expense due to increased plant assets and updated depreciation rates
  • Higher operations and maintenance expense
  • Inability to continue using alternative revenue accounting treatment for the lost fixed cost recovery (LFCR) mechanism

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 Q3 2022

Historical avgQ3 2022

+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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