PINNACLE WEST CAPITAL (NYSE:PNW) reported second-quarter earnings that came in below analyst expectations on the bottom line, while revenue exceeded estimates, leaving shares about 2% lower in pre-market trading. The Phoenix-based energy holding company posted diluted earnings of $1.43 per share for the quarter ended June 30, 2026, versus the $1.48 consensus, while revenue of $1.46 billion came in ahead of the $1.40 billion analysts had projected.
A mixed quarter against Street forecasts
The headline numbers split cleanly between profit and sales:
- Reported diluted EPS: $1.43 versus $1.48 expected, a miss of about 3.4%
- Reported revenue: $1.46 billion versus $1.40 billion expected, a beat of about 3.7%
- Net income attributable to common shareholders: $178.6 million, down from $192.6 million in the same period last year
- Diluted EPS a year ago: $1.58
The year-over-year decline in net income was roughly $14 million. Management pointed to higher interest charges, increased depreciation and amortization, and lower transmission service revenues as the main drags, partly offset by favorable weather, customer growth and usage, reduced operations and maintenance expense, and lower taxes.
What drove the quarter
The warm start to the Arizona summer was a notable tailwind. Chairman, President and CEO Ted Geisler said temperatures reached 105 degrees Fahrenheit as early as March, prompting customers to use air conditioning sooner and more heavily than a year earlier. Residential cooling degree days rose 7% in the quarter, supporting what the company described as sustained load growth.
At the operating subsidiary level, Arizona Public Service Co. reported:
- Residential customer growth of 2.1%
- Weather-normalized sales growth of 5.6%
- Total sales growth of 9.6%
The company also flagged plans to convert two retired coal-fired units at the Cholla Power Plant to natural gas, adding about 380 MW of dispatchable capacity by 2029, subject to regulatory approvals.
Guidance versus consensus
Pinnacle West maintained its 2026 outlook of $4.55 to $4.75 per diluted share on a weather-normalized basis. The midpoint of that range, $4.65, sits below the full-year consensus estimate of roughly $4.80 per share, which may be adding to the negative tone in the stock.
Because the company reaffirmed rather than raised its guidance, the updated range leaves little room for error in the second half of the year if the consensus estimate is to be reached.
Market reaction
The pre-market decline of roughly 2% extends a softer stretch for the shares, which had already fallen about 4.3% over the past week and 5.7% over the past month. The market response suggests the EPS miss and the gap between guidance and consensus are weighing more heavily than the revenue upside.
For investors tracking the company's quarterly performance, more historical earnings information can be reviewed here. Those looking to see how future estimates are shaping up can view the latest projections and forecasts.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »
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Pinnacle West Capital (NYSE:PNW) Falls as Q2 EPS Misses Offsets Revenue Beat
PINNACLE WEST CAPITAL (NYSE:PNW) reported second-quarter earnings that came in below analyst expectations on the bottom line, while revenue exceeded estimates, leaving shares about 2% lower in pre-market trading. The Phoenix-based energy holding company posted diluted earnings of $1.43 per share for the quarter ended June 30, 2026, versus the $1.48 consensus, while revenue of $1.46 billion came in ahead of the $1.40 billion analysts had projected.
A mixed quarter against Street forecasts
The headline numbers split cleanly between profit and sales:
The year-over-year decline in net income was roughly $14 million. Management pointed to higher interest charges, increased depreciation and amortization, and lower transmission service revenues as the main drags, partly offset by favorable weather, customer growth and usage, reduced operations and maintenance expense, and lower taxes.
What drove the quarter
The warm start to the Arizona summer was a notable tailwind. Chairman, President and CEO Ted Geisler said temperatures reached 105 degrees Fahrenheit as early as March, prompting customers to use air conditioning sooner and more heavily than a year earlier. Residential cooling degree days rose 7% in the quarter, supporting what the company described as sustained load growth.
At the operating subsidiary level, Arizona Public Service Co. reported:
The company also flagged plans to convert two retired coal-fired units at the Cholla Power Plant to natural gas, adding about 380 MW of dispatchable capacity by 2029, subject to regulatory approvals.
Guidance versus consensus
Pinnacle West maintained its 2026 outlook of $4.55 to $4.75 per diluted share on a weather-normalized basis. The midpoint of that range, $4.65, sits below the full-year consensus estimate of roughly $4.80 per share, which may be adding to the negative tone in the stock.
Because the company reaffirmed rather than raised its guidance, the updated range leaves little room for error in the second half of the year if the consensus estimate is to be reached.
Market reaction
The pre-market decline of roughly 2% extends a softer stretch for the shares, which had already fallen about 4.3% over the past week and 5.7% over the past month. The market response suggests the EPS miss and the gap between guidance and consensus are weighing more heavily than the revenue upside.
For investors tracking the company's quarterly performance, more historical earnings information can be reviewed here. Those looking to see how future estimates are shaping up can view the latest projections and forecasts.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Always conduct your own research and consider your risk tolerance before making investment decisions.
Read full article here »