Overview

• Pinnacle West Q3 net income rises to $413.2 mln, driven by customer growth and usage

• Adjusted EPS for Q3 beats analyst expectations

• Company plans new natural gas plant to support future energy needs

Outlook

• Company raises 2025 earnings guidance to $4.90-$5.10 per share

• Company estimates 2026 earnings at $4.55-$4.75 per share

Result Drivers

• CUSTOMER GROWTH - Increased customer usage and growth drove Q3 results, supported by Arizona's rapid population growth and record summer heat

• LOWER COSTS - Lower operations and maintenance expenses contributed positively to Q3 results

• WEATHER IMPACT - Despite lower temperatures compared to last year, energy consumption rose due to higher-than-average temperatures

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 $97.00, about 8.7% above its October 31 closing price of $88.52

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)