trending Market Intelligence /marketintelligence/en/news-insights/trending/pyjfapym4bi97ei1daus6g2 content esgSubNav
Log in to other products

 /


Looking for more?

Contact Us
In This List

Pinnacle West Q4'17 net income down YOY on higher expenses, tax rates

Blog

Highlighting the Top Regional Aftermarket Research Brokers by Sector Coverage

Blog

Essential Energy Insights, May 2021

Video

COVID-19 Impact & Recovery: Energy Outlook for H2 2021

Blog

Corporate renewables market flourished in 2020 despite pandemic


Pinnacle West Q4'17 net income down YOY on higher expenses, tax rates

Pinnacle West Capital Corp. on Feb. 23 reported fourth-quarter 2017 net income attributable to shareholders of $21.6 million, or 19 cents per share, down from $53.2 million, or 47 cents per share, in the same quarter of 2016.

The result beat the S&P Capital IQ consensus normalized EPS estimate for the most recent quarter of 12 cents.

The decrease was attributed to higher operating expenses, bad weather and a higher effective tax rate, which more than offset increases in transmission revenue, retail revenue and retail base rate.

Fourth-quarter operating revenues rose to $759.7 million in 2017 from $739.2 million in 2016, while fourth-quarter operating income was down year over year to $90.6 million compared to $122.8 million in the corresponding quarter of 2016. Operating expenses totaled $669.0 million during the most recent quarter, an increase from $616.4 million in the comparable quarter of 2016.

On a full-year basis, Pinnacle West booked $488.5 million, or $4.35 per share, in 2017 net income attributable to shareholders, compared with $442.0 million, or $3.95 per share, in 2016.

The S&P Capital IQ consensus normalized EPS estimate for 2017 was $4.26.

Full-year 2017 operating revenues rose to $3.57 billion from $3.50 billion in 2016, while operating income was up year over year to $934.4 million compared to $856.0 million in 2016. Operating expenses totaled $2.63 billion for the year ending Dec. 31, 2017, down from $2.64 billion in 2016.

"Led by strong operational performance and a regulatory settlement that allows us to continue investing in a smarter and cleaner energy infrastructure, 2017 proved to be another solid year for our company," said Pinnacle West Chairman, President and CEO Don Brandt. "If approved by the Commission, the $119 million tax decrease will offset the $95 million revenue increase that resulted from our rate review this past fall."

2018 guidance

For 2018, Pinnacle West raised its consolidated EPS guidance to the range of $4.35 to $4.55 and expects to achieve a consolidated earned return on average common equity of more than 9.5%.