Pinnacle West Posts Strong Quarterly Results

Pinnacle West Capital reported 2013 ongoing earnings of $3.66 per share versus $3.50 per share in 2012. The results were $0.03 better than the consensus estimate. Pinnacle West reiterated its 2014 ongoing earnings guidance of $3.60-$3.75 per share.

Pinnacle West pushed its three-year financial outlook forward one year to 2014-16. One notable difference is that annual retail customer growth is expected to average 2.5% versus 2% in the prior three-year period. Weather-normalized retail sales growth net of customer conservation and distributed renewable generation (primarily rooftop solar) is now about 1% versus less than 1% in the prior outlook. The acceleration in sales growth is being driven by an improving Arizona economy.

Pinnacle West’s realized return on equity for 2013 was 9.9%, in line with our estimate. The acceleration of the three-year weather-normalized sales growth outlook increases our confidence that realized ROE will decline to only 9.5% in 2015 before new rates become effective in 2016 when the four-year rate case stay-out period ends.

Signup for free to be the first to receive exclusive free links. Now in your mailbox!
Join over 15,000 subscribers
Send me links

Your information will not be shared to anyone