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Phoenix – pinnacle west Capital Corp. (NYSE: NYSE:) reported breakeven earnings per share (EPS) for the fourth quarter, beating Wall Street's estimate of -$0.13. Despite the EPS beat, the company's revenue was below analyst estimates, coming in at $991.57 million, compared to the consensus estimate of $1.11 billion.
The utility company's full-year financial results were positively impacted by favorable weather conditions, strong customer growth, and strong operating results, with full-year 2023 consolidated net income of $501.6 million, or diluted 1 The price came to $4.41 per share. Last year's reported net income was $483.6 million, or $4.26 per diluted share.
Jeff Guldner, Chairman, President and CEO of Pinnacle West, said the strong financial results were due to the company's strategic adaptations and the constructive outcome of the 2022 interest rate litigation. He also praised the dedication of employees who helped the company's diverse generators provide reliable and resilient power, especially during the hottest U.S. summer on record.
Looking ahead, Pinnacle West provides financial guidance for fiscal year 2024, estimating EPS to be between $4.60 and $4.80. The midpoint of this guidance range, $4.70, is slightly below the analyst consensus of $4.79.
The company's stock reacted positively to the earnings news, posting a modest gain of +0.87% in pre-market trading on Tuesday, indicating investors' approval of the company's strong performance and future outlook.
Arizona Public Service (APS), a subsidiary of Pinnacle West, expects customer growth of 2% in 2023 and average annual growth of 1.5% to 2.5% through 2026. To ensure reliability and meet growing energy demands, APS applied for a transmission system. Plans include significant upgrades over the next 10 years.
Gardner emphasized that the company is focused on serving its customers and improving the customer experience, noting that according to JD Power, APS ranks in the second quartile for both business and residential customers. Masu. The company's efforts have been recognized by residential customers, who ranked APS second among its peers in the areas of Perfect Power and Phone Customer Care.
The company's financial outlook and commitment to reliability and customer service position Pinnacle West to continue driving Arizona's economic expansion.
Investment Pro Insights
Pinnacle West Capital Corporation (NYSE: PNW) has demonstrated resilient financial performance, supported by a series of strategic decisions reflected in the company's recent earnings release. To provide further context and depth on the company's financial health and future prospects, here are some key metrics and insights from InvestingPro.
Pinnacle West has a market capitalization of $7.89 billion, according to InvestingPro data, highlighting the company's large presence in the utilities sector. The company's price-to-earnings ratio (P/E) of 16.41 is in line with industry standards, suggesting a balanced valuation compared to its earnings. Additionally, the company's sales growth rate for the past 12 months as of Q3 2023 was a solid 14.58%, demonstrating the company's ability to grow sales even in a challenging economic environment.
One of Pinnacle West's notable InvestingPro tips is the company's laudable track record of raising its dividend for 12 consecutive years, a testament to the company's commitment to delivering shareholder value. Additionally, Pinnacle West has not only maintained but paid a generous dividend to shareholders for his 32nd consecutive year, which is especially attractive to income-oriented investors. This is further evidenced by the effective dividend yield of 5.08%.
The company is also trading near its 52-week low, which could represent a potential entry point for investors who believe in the company's fundamentals and long-term strategy. For investors who want to learn more about Pinnacle West, additional InvestingPro tips are available by visiting https://www.investing.com/pro/PNW. Use a coupon code to increase the value of your InvestingPro subscription pro news 24 Get an extra 10% off annual or biennial Pro and Pro+ subscriptions.
In summary, Pinnacle West's financial stability and commitment to shareholder return, combined with its strategic focus on customer service and operational efficiency, positions it as a company to watch for investors. Six more of his InvestingPro tips are available to help investors dig deeper into company performance and make more informed decisions.
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