Pinnacle West Q1 Earnings Miss Estimates, Revenues Beat

Core Insights - Pinnacle West Capital Corporation (PNW) reported a first-quarter 2025 loss of 4 cents per share, missing the Zacks Consensus Estimate of earnings of 5 cents by 180% [1] - Total revenues for the quarter were $1.03 billion, exceeding the Zacks Consensus Estimate of $0.96 billion by 7.7% and increasing 8.4% from $0.95 billion in the year-ago quarter [1] Operational Highlights - Total operating expenses rose to $975 million, a 10.2% increase year over year, attributed to higher fuel and purchased power costs, as well as increased operations and maintenance expenses [2] - Operating income decreased to $57.2 million, down 14.4% from $66.8 million in the prior-year quarter [2] - Total interest expenses increased to $104.9 million, up 5.1% from $99.8 million in the previous year [2] Financial Highlights - As of March 31, 2025, cash and cash equivalents were $10 million, compared to $3.84 million as of December 31, 2024 [3] - Long-term debt, less current maturities, was $8.06 billion, slightly down from $8.058 billion as of December 31, 2024 [3] - Net cash flow from operating activities for the first quarter of 2025 was $401.9 million, compared to $347.3 million in the year-ago period [3] Guidance - The company expects consolidated earnings for 2025 to be in the range of $4.40-$4.60 per share, with the Zacks Consensus Estimate at $4.51, above the midpoint of the company's guidance [4] - Pinnacle West plans to invest $7.6 billion during the 2025-2027 period to enhance its operations [4] - Management anticipates a retail customer increase of 1.5-2.5% in 2025 [4] Zacks Rank - Pinnacle West currently holds a Zacks Rank 3 (Hold) [5]