Pinnacle West Capital Corporation PNW is scheduled to release first-quarter 2026 results on May 4, before the market opens. The company delivered an earnings surprise of 160% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
PNW’s Q1 Expectations
The Zacks Consensus Estimate for earnings is pegged at a loss of 3 cents per share, which implies a year-over-year increase of 25%.
The consensus estimate for revenues is pinned at $1.08 billion, indicating an increase of 4.64% from the year-ago reported number.
The Zacks Consensus Estimate for total electric sales is pegged at 8155.3 gigawatt-hour, up 4.63% from the year-ago quarter’s reported figure.
Factors Likely to Have Impacted PNW’s Q1 Earnings
Pinnacle West’s first-quarter earnings are expected to have benefited from a rise in electricity demand, fueled by increased consumption from manufacturing facilities and rising demand from multiple data centers. Increasing demand from C& I customers is also expected to have boosted its earnings during the quarter.
The company unit, Arizona Public Service, has completed more than 400 megawatt energy projects, which include new natural gas power units, a battery storage facility and a solar power plant. These projects are likely to have enhanced grid reliability, supported the meeting of growing electricity demand, improved operational efficiency and strengthened overall earnings performance.
The company has been benefiting from an expanding retail and diversified customer base, driven by the robust economic development in its service region. These factors are likely to have boosted revenues and support earnings reported.
PWN has a strong cost management strategy and plans to reduce operations and maintenance expenses per megawatt hour. These initiatives, along with support cost reduction, are expected to have improved financial performance and acted as tailwinds for first-quarter earnings.
However, higher financing costs and property taxes, due to higher plant in service, are likely to have offset some of the positives in the to-be-reported quarter.
What Our Quantitative Model Predicts for PNW
Our proven model predicts an earnings beat for Pinnacle West Capital this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is exactly the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is +85.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Pinnacle West Capital carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Pinnacle West Capital Corporation Price and EPS Surprise
Pinnacle West Capital Corporation price-eps-surprise | Pinnacle West Capital Corporation Quote
Other Stock to Consider
Investors may also consider the following players from the same industry, as these have the right combination of elements to post an earnings beat this reporting cycle.
WEC Energy Group WEC is likely to come up with earnings beat when it reports first-quarter results on May 5. It has an Earnings ESP of +0.54% and a Zacks Rank #3 at present.
WEC’s long-term (three to five years) earnings growth rate is 7.44%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $2.31, which implies a year-over-year increase of 1.76%.
Duke Energy Corporation DUK is scheduled to report first-quarter results on May 5. It has an Earnings ESP of +1.31% and a Zacks Rank #3 at present.
DUK has a dividend yield of 3.29%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.79, which implies a year-over-year increase of 1.70%.
Ameren Corporation AEE is set to report first-quarter results on May 6. It has an Earnings ESP of +1.29% and a Zacks Rank #3 at present.
AEE’s long-term earnings growth rate is 9.27%. The Zacks Consensus Estimate for first-quarter EPS is pinned at $1.17, which implies a year-over-year increase of 9.35%.
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This article originally published on Zacks Investment Research (zacks.com).