Pinnacle West Q1 EPS beats estimates on higher usage

Overview

• US electric utility's Q1 net income swung to profit on higher customer usage and growth

• Q1 EPS beat analyst expectations

• Company cites hotter weather, higher transmission revenues, and customer growth as key drivers

Outlook

• Pinnacle West estimates 2026 consolidated EPS between $4.55 and $4.75 on weather-normalized basis

• Company says infrastructure investments and resource additions support reliability for upcoming summer

• Pinnacle West expects robust customer growth and strong Arizona economy to drive future demand

Result Drivers

• WEATHER IMPACT - Unusually warm winter and record March temperatures drove higher customer energy usage, according to CEO Ted Geisler

• CUSTOMER GROWTH - 2.2% increase in customer base contributed to higher sales and usage

• LOWER O&M EXPENSES - Lower operations and maintenance expenses supported improved results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 13 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electric utilities peer group is "buy."

• Wall Street's median 12-month price target for Pinnacle West Capital Corp is $106.00, about 2.4% above its May 1 closing price of $103.54

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 20 three months ago

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