Pinnacle West Capital
The 10-second takeaway
For the quarter ended March 31 (Q1), Pinnacle West Capital missed estimates on revenues and exceeded expectations on earnings per share.
Compared with the prior-year quarter, revenue dropped and GAAP loss per share shrank.
Margins improved across the board.
Pinnacle West Capital logged revenue of $620.6 million. The three analysts polled by S&P Capital IQ predicted sales of $666.3 million on the same basis. GAAP reported sales were 4.3% lower than the prior-year quarter's $648.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.07. The 10 earnings estimates compiled by S&P Capital IQ predicted -$0.08 per share. GAAP EPS were -$0.08 for Q1 against -$0.14 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.2%, 320 basis points better than the prior-year quarter. Operating margin was 7.7%, 220 basis points better than the prior-year quarter. Net margin was -1.3%, 100 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $842.3 million. On the bottom line, the average EPS estimate is $1.01.
Next year's average estimate for revenue is $3.36 billion. The average EPS estimate is $3.37.
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 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 30 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 $48.96.
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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. He is the 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 don't 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.