Pinnacle West Capital
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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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 of Motley 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.