Pinnacle West Capital Crushes Earnings Estimates
Pinnacle West Capital (NYS: PNW) reported earnings on Feb. 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Pinnacle West Capital met expectations on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share grew significantly.
Margins grew across the board.
Pinnacle West Capital reported revenue of $667.9 million. The two analysts polled by S&P Capital IQ anticipated revenue of $667.2 million on the same basis. GAAP reported sales were 1.6% higher than the prior-year quarter's $657.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.11. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.05 per share on the same basis. GAAP EPS of $0.12 for Q4 were 100% higher than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.5%, 290 basis points better than the prior-year quarter. Operating margin was 11.8%, 320 basis points better than the prior-year quarter. Net margin was 1.9%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $657.5 million. On the bottom line, the average EPS estimate is -$0.03.
Next year's average estimate for revenue is $3.41 billion. The average EPS estimate is $3.36.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 109 members out of 130 rating the stock outperform, and 21 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 31 give Pinnacle West Capital a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pinnacle West Capital is hold, with an average price target of $47.33.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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