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Pinnacle West Capital Misses on Both Revenue and Earnings

By Seth Jayson - Updated Apr 7, 2017 at 11:56AM

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Just the facts, Fool.

Pinnacle West Capital (NYSE: PNW) reported earnings on Nov. 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Pinnacle West Capital missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted.

Gross margins grew, operating margins grew, net margins shrank.

Revenue details
Pinnacle West Capital reported revenue of $1.11 billion. The two analysts polled by S&P Capital IQ predicted sales of $1.14 billion on the same basis. GAAP reported sales were 1.4% lower than the prior-year quarter's $1.12 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $2.21. The 13 earnings estimates compiled by S&P Capital IQ forecast $2.25 per share. GAAP EPS of $2.21 for Q3 were 5.2% lower than the prior-year quarter's $2.33 per share. (The prior-year quarter included $0.09 per share in earnings from discontinued operations.)

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 52.8%, 150 basis points better than the prior-year quarter. Operating margin was 40.4%, 170 basis points better than the prior-year quarter. Net margin was 22.1%, 60 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $694.3 million. On the bottom line, the average EPS estimate is $0.13.

Next year's average estimate for revenue is $3.35 billion. The average EPS estimate is $3.43.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 115 members out of 138 rating the stock outperform, and 23 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $53.00.

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Stocks Mentioned

Pinnacle West Capital Corporation Stock Quote
Pinnacle West Capital Corporation
PNW
$66.56 (0.20%) $0.13

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